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continued growth in Hong Kong-China economic relations. In those policy areas in which the Government plays an essential role, such as the preservation of free trade, safeguarding Hong Kong as a separate and autonomous customs territory, and minimizing rigidities in the local economy, particularly in the labour market, it should continue to resist pressures for policy changes that threaten the economy's free enterprise orientation Further, the Government should continue its efforts in facilitating product upgrading and economic diversification, in improving the educational standards and language ability of the workforce, and in improving infrastructural facilites, particularly those providing links with China. By maintaining its uniqueness while strengthening its position in serving China's development needs, the potential gains for the Hong Kong economy from the growing economic relations with China should be very considerable.
Economic Analysis Division Economic Services Branch Government Secretariat 24th December 1986
G.F. 326
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