09-OCT-1991 16:56

SECRETARIAT D.A.U.

+852 845 7895

P.11

Hong Kong.

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41.

Our domestic

exports in the first seven months of

this year increased by 2% in real terms. This compares

with

last year.

Other indicators of

of 3% for the

same period

up 26%.

decline a

Re-exports have boomed

economic activity are also moving in the right direction.

Local and overseas investment in plant and equipment has

picked up sharply. In the first seven months of this year,

such investment was 18% higher than in the same period a

year ago. We have already been able to revise upwards our

earlier forecast of economic growth. We now expect growth

this year to be about 4%.

42.

our

Hong Kong's economic success is tied closely to

traditional role as the gateway to southern China. Our

trade with China continues to expand at great speed. It

grew by 15% in 1990. In the first seven months of 1991,

growth was an astonishing 27%. As a result, intensive

business and

Kong and the

investment relations are growing between Hong

fast-developing economy of southern China.

Chief executive officers of international companies who are

planning expansion in Asia would do well to think of this,

/and

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