entrepreneurial, education, and skilled manpower termo - more often than not by helping with "attitude" and providing a meeting place for people and a facility for the exchange of ideas rather than by the exchange of physical goods and services. Hong Kong has become successful as an economic entity because it has always been outward-looking - particularly so in the last few decades - and because our life-style is characterised by a high degree of individual self-reliance, proper risk/reward ratios, and the enjoyment of personal freedoms. This proven formula is what we need to protect, not only in order to remain a prosperous cornmunity but to maintain the ability to export our success to China, copecially when Hong Kong becomes part of the People's Republic.
The international character of Hong Kong has in the last few years also been strengthened by the need for Hong Kong business interests to diversify abroad. Whether it is the Hong Kong and Shanghai Bank increasing its overseas investments in the United States, Canada, Britain and elsewhere, or the firms associated with Mr Li Ka-ching or with other local business magnates, they are all driven by the riced to develop their commercial activities beyond Hong Kong largely because of the physical constraints imposed by the relative market size of this territory (as compared with the size of the holdings now controlled by these prominent individuals and institutions), and not as is often mistakenly portrayed in the overseas media - as a consequence of the 1997 factor. There is no flight of capital out of Hong Kong, only the evidence of normal business expansion beyond the territory's borders, characteristically more and more also into China itself. These activities will necessarily contribute to the further internationalisation of Hong Kong as cross-border personal and financial links grow but this time with Hong Kong money and expertise in the driving seat. The steady move (in percentage terms) away from the manufacturing and into the services sector will do the rest: not only our mushrooming tourist industry will mean more contacts with the Pacific Rim region and the world, but many of our professional services have increasingly to take a more global view and look outside for growth to keep up with new demands occasioned by these developments. A bit more on this later.
On the other hand, it would be quite foolish to suggest that the present emigration of people from Hong Kong will slow down or could even stop in the next few years. This would only happen if countries presently very keen to attract immigrants changed their policies again. Indications are that this is not very likely. Emigration is a very personal malter and not easily countered by government actions of discouragement without the
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