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lettuce, peppers, apples, cherries and lemons. We are in

the top three of your markets for all of these,

Small wonder that the State of California is to

open a Trade Office in Hong Kong. We welcome you warmly. We

know you will do good business.

The Pacific rim economies have led the way in

multiple source manufacturing. We have all benefitted from

this. The possibilities for trade expansion are boundless.

As China's economy has opened up so have the opportunities

for joint ventures. Many Hong Kong firms have already

adjusted to this new comparative advantage. Outward

processing is the order of the day and the trade in

components and semi-manufactures has grown exponentially.

There is a parallel transfer of technology and management

skills. Hong Kong has a key role to play in this and the

modernisation of the Chinese economy which will flow from

it.

Mr. Chairman.

The shock to our system this year

has been severe. But have no illusion about where our

future lies. Geography defines us as the great port of

China's southern coast. The history of the last thirty

years has shown what we can do: we have climbed the league

table of world traders from nowhere to 27th position in

1978 and 11th position today. We are building a bigger port

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