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THE MORE CONFIDENCE WAS ALSO HELPED.
4"
LI SAID THAT HE HAD RECENTLY RETURNED FROM SOUTH EAST ASIA. ALL HIS INTERLOCUTORS THERE HAD EXPRESSED THE AIM OF REPLACING HONG KONG AS THE CENTRE OF REGIONAL TRADE. THIS MADE HIM NERVOUS EXCLAM.
5.
I REPLIED TAHT HONG KONG'S POSITION WAS CERTAINLY COVETED BY SINGAPORE AND BANGKOK, AMONG OTHERS. FOR THIS REASON, HONG KONG NEEDED TO KEEP AHEAD. THIS MEANT WE HAD TO PRESS ON WITH NEW FACILITIES OR RISK LOSING OUT
FUTURE OPPORTUNITIES FOR TRADE.
6. LI SAID THAT CHINA WELCOMED INVESTMENT BY HONG KONG PEOPLE. ALTHOUGH SOUTHERN CHINA HAD NOT REACHED SATURATION POINT, HE HOPED THAT THEY WOULD ALSO INVEST IN INLAND CHINA AND AREAS SUCH AS PUDONG. CHINA WAS AWARE THAT THE INVESTMENT ENVIRONMENT WAS NOT PERFECT, BUT WAS TRYING TO REMEDY THE SITUATION TO ENSURE MUTUAL BENEFITS. HE APPRECIATED THE HELP PROVIDED BY TRAINING OPPORTUNITIES IN HONG KONG. HIS ADVICE WAS THAT HONG KONG PEOPLE SHOULD FIND A SUITABLE PARTNER AND A PLACE WHERE THE STAFF QUALITY WAS GOOD.
I REPLIED THAT ALTHOUGH, NATURALLY, MOST HONG KONG INVESTMENT WAS IN GUANGDONG, OUR BUSINESSMEN WERE ALSO INTERESTED IN PUDONG AND ELSEWHERE. BUT THEY WERE KEEN TO SEE A GOOD RETURN ON THEIR CAPITAL. THIS WOULD BE JEOPARDIZED IF FREE COMPETITION BETWEEN CHINESE AND FOREIGN SHIPS WAS NOT PERMITTED.
CHINA'S TRADE POLICY.
8. LI SAID THAT IN 1991 CHINA WAS PROPOSING TO DELEGATE MORE POWERS TO LOCAL AUTHORITIES AND ABANDON EXPORT SUBSIDIES IN THESE EXPERIMENTAL AREAS GARMENTS, LIGHT INDUSTRY AND ARTS
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AND CRAFTS TO ESTABLISH A MORE COMPETITIVE SYSTEM. RECENT DEVALUATIONS HAD NARROWED THE GAP BETWEEN THE REAL AND MARKET VALUE OF THE CURRENCY. FOREX RESERVES WERE GOOD.
THE AMOUNT OF IMPORTS DEPENDED ON THE LEVEL OF RESERVES: CHINA AIMED FOR A TRADE BALANCE.
MOST FAVOURED NATION STATUS (MFN).
9. LI THANKED ME FOR ALL THE HELP THAT HONG KONG HAD GIVEN IN ARGUING THE CASE FOR RETENTION OF MFN. HOWEVER THE PROBLEM WAS COMING ROUND AGAIN. FURTHER HELP WOULD BE APPRECIATED.
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