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31 per cent in the last five years. This trend has greatly benefit Hong Kong, which principally exports.manufactured goods to Japan. A third reason is the appreciation of the Yen, which has enhanced

Japan's imports world-wide. Last but not least, Japan, faced with

the problem of a massive current account surplus, is now sincerely

striving to-harmoniously integrate its economic structure into the

international economy as reflected in the so-called "Maekawa Report submitted to Prime Minister Nakasone in April this year. Such effo.

undoubtedly benefit Hong Kong's exports of manufactured goods to

Japan, an enormous market inhabited by 120 million people with a

high living standard.

The last area in which the two peoples should intensify their efforts is in the field of cultural and academic exchanges. The

promotion of these exchanges is of great importance to future relations between Hong Kong and Japan. We now witness a growing interest(which some even call a "fever") in learning the Japanese

language by the people of Hong Kong and, in particular, its youth. I also point out the growing academic interest in Japanese studies, and in this context I particularly welcome the Hong Kong University' establishment of a degree course in Japanese studies last year. There are indeed many other exchanges, in books, films, paintings, performing arts, music and sports, being conducted each year. We will do our best to promote these cultural and academic exchanges

between Hong Kong and Japan. This is one area in which almost

everybody can take part, including all of you who are present at this gathering today.

I have briefly sketched how Hong Kong and Japan can in the coming years develop mutually beneficial bilateral relationships in four areas, namely, personal contact, investment, trade and cultural and academic exchanges. I firmly believe that the development of these relationships will contribute greatly to the maintenance and enhancement of Hong Kong's stability and prosperity and standing as the most important international

metropolis in Asia.

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