D.
1.
SU ZAAS
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HONG KONG ECONOMY (INCLUDING HONG KONG/CHINA COOPERATION)
General
The economy is performing exceptionally well. The figures speak for themselves: a growth rate in 1987 of 13.8%, following growth of 11% in 1986. GDP per head is expected tor each $US 9,200 in 1988, second in Asia only to Japan. And all the other major economic indicators tell a similar story.
2. Development projects
An impressive number of major projects are planned or underway: a third university; a light rail system; two 1,600 bed hospitals, major reclamation projects; construction in 1988 of 40,000 public housing units for rental and sale; a major new road tunnel link ; a second tunnel under the harbour; and two new container terminals.
These projects provide tangible evidence of the high level of business confidence in the territory.
3. Hong Kong/China Cooperation
In recent years Hong Kong's economic relatons with China generally, and Guangdong province in particular, have undergone rapid growth and development. Since 1985 China has been Hong Kong's largest trading partner. It is now the second largest market for Hong Kong's re-exports and the largest source for Hong Kong's imports. Hong Kong has recently become China's largest trading partner, accounting for more than a quarter of China's external trade. These are highly significant developments which are laying an important foundation of cooperation and trust for the post-1997 period.
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