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It has proven a potent formula. Of our 160 banks,

136 are incorporated overseas overseas, and 22 of these

come from the United States. This year we have issued

eleven new bank licences; seven of them since June 4. Ten

of the banks use Hong Kong as their regional headquarters.

We also have 10 overseas security companies and commodities

traders.

So what of our future? What is it that worries

people? It is of course the question in people's minds

over whether all the arrangements for the future laid down

in the 1984 Sino British Joint Declaration will work out in

practice.

Under the Joint Declaration, sovereignty over Hong

Kong reverts over to China at midnight on 30 June 1997. The

agreement, carefully and painstakingly negotiated between

Britain and China sets out how this transcion is to take

place. In brief, Hong Kong is to become a Special

Administrative Region, with its distinctive capitalist

system preserved separate from the rest of China. All its

key institutions are to continue in their present form.

We are to have the same legal system with the

final court of appeal in HK.

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