FOREIGN SECRETARY

SPEECH

A

LONDON

6

16 SEPTEMBER 1991

arrived in Hong Kong.

I remember that skyscraper city when it was a tiny market town

that you looked at across the border, the first market town in

China where the railway came through at Shenjung (phon). Now it

is a huge city, a huge Chinese city and the Hong Kong enterprise

employ in the whole province of Hong Kong 2 3 million Chinese

workers, 86 percent of the investment in Guandong Province comes

from Hong Kong and about 6,000 Hong Kong managers work there.

Guandong is now China's top exporting province generating about 20

percent of China's foreign exchange. Guandong's exports amounted

to US dollars 10 billion in 1990.

I mention this fact because it is often forgotten in all the

discussion about Hong Kong but I think it is very significant to

anyone considering investment in Hong Kong, you are also investing

in the key to southern China. There is a huge potential there, 60

million people in Guandong Province compared to 6 million in Hong

Kong itself.

I do not claim, Ladies and Gentlemen, that this relationship that

I have been talking about between Britain and China, between all

the different elements in Hong Kong, will be an entirely smooth

one between now and 1997 because what we are trying to do is

difficult, we are trying to make a success of the concept of two

systems in one country. There will be ups and downs, just as

there have been in recent years, we are negotiating an immensely

difficult transition within the framework of the Joint

Declaration. I just hope that investors will not get cast into

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