15 -

36.

Mr. Clydesdale referred to a private sector

initiative to produce a forward looking report on the

economy. I had heard this proposal before, but in the

light of what he has said, I shall be happy to give it

further consideration.

le Hong Kong/China Economic Relations

35.

Mr. CHUNG Pui-lam and Mr. HQ Sai-chu both mentioned

the benefits to the economy that have come from its

increasingly close ties with China. These closer ties,

which are evidenced by the increased trade flows between

Hong Kong and China, and by the large number of Chinese

workers engaged on processing work for Hong Kong

manufacturers, should be welcomed for having added a new

and beneficial dimension to our economy. An even greater

degree of economic integration can be expected in the

future as China continues to pursue its policy of economic

reforms. Although it is not always easy to predict the

precise ways in which this economic integration will

develop, the Government takes this trend into account in

its planning of Hong Kong's infrastructure.

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