this century and early next century,

Hong

Kong

its

capitalism while we practise

our

between

may practise

socialism.

Therefore, investors around the world have

nothing to worry about."

Then, in 1984, when meeting with the British Foreign

Secretary Sir Geoffrey Howe, Mr. Deng Xiaoping

stressed: "Hong Kong's prosperity and stability can not

be maintained without the guarantee of its continued

capitalist system." and "I am confident

country, two systems' is workable."

that

' one

Mr. Deng's remarks were by no means casual. What he

said was the

-

conclusion drawn after a

great

deal of

investigations

and studies. Before the negotiation

between

China and Britain on the question of

Hong Kong

started,

he personally had talks with people from Hong

Kong and sent people to Hong Kong several times to

field studies. And then, we had a special team set up

go into this question. First we

make

to

analyzed the factors

leading to the economic success in Hong Kong and the

conditions under which they were formed. Then, we studied

whether these factors could continue after 1997.

The conclusion we came to was:

The success of Hong Kong should first and foremost

attributed to its advantageous position, leaning its back

on the Mainland while facing Southeast Asia.

be

As you all know, the Mainland each year provides

2

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