153

measures

will

create very

favourable

conditions for the

development

of

China and

the strengthening

of China-HK

trade and economic ties.

Thirdly from the

Kong has developed from a

prospective of Hong Kong. Hong

unidimensional entrepot to an

important financial, trading and shipping centre in the

Asian-Pacific Region after four decades of development.

Notwithstanding, the continuing challenges posed by

neighbouring countries in recent years, Hong Kong with her "privileged geographical position of being adjacent to the

Chinese hinterland and well-developed service facilities,

will continue to maintain her position. Being faced with

the difficult situations of inflation, the shortage of

labour and structural changes in industries, it is only

natural that Hong Kong will develop even closer economic

co-operation with

with China so that both sides can bring their

respective competitive edge into full play and complement

each other.

In

is stable;

addition,

if

the policies of

the political situation in China

opening up, 'one country two

systems' and 'Hong Kong people ruling Hong Kong' remain

unchanged; and that both China and Britain strictly adhere

to the spirit of the Joint Declaration in order to ensure

to 1997, then smooth development of Hong

smooth

transition

Kong's economy and

political guarantee.

China-HK trade ties

be will

given

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