(m)
A discussion of investment policies for the year 2000.
In a changing commercial environment, Hong Kong will need to target markets well in advance. Given a changing world, expertise gained in discussion with "targeted areas" can be useful. How, for example, should business respond to the following in deciding on investment in new lines and machinery?
"Although a recovery is in sight, it is unlikely to be
dramatic. Sales to the major industrial countries of the U.S., U.K. and Japan are expected to remain subdued, as authorities continue to maintain a relatively tight monetary policy to combat inflation. In the U.S., for example, the sales to inventory ratio for retail business is on the decline as poor sales led to a build-up, rather than a depletion, of inventories. A strong Japanese economy notwithstanding, the weakening of the Japanese yen against the U.S. dollar earlier in the year has undermined the price competitiveness of Hong Kong products in this market."
"More marked recoveries, however, are likely to be found in
shipment to West Germany and China. Following the monetary unification of West and East Germany on July 1, stronger import demand for consumer goods from the unified country is expected. Domestic exports to China are also expected to regain strength as the Chinese Government is easing its austerity programme and tight monetary policy. In addition, some of the foreign loans to China frozen after June last year are now being resumed. The anticipated modest pick-up in exports to the industrial economies also means increased outprocessing activities which would again spur shipment
there."
Comparative discussions on new markets is going to be needed.
(n) Religion and Politics
This is of concern to me (a) because of the issue itself, and (b) because the attitude of the PRC to religion may be indicative of its attitude to rights and freedoms in general. The Chinese attitude to these things may be relevant to Hong Kong. Article 36 of the Constitution of the PRC provides as follows:-
No
"Citizens of the PRC enjoy freedom of religious belief.
state organ, public organisation or individual may compel citizens to believe in, or not to believe in, any religion; nor may they discriminate against citizens who believe in, or do not believe in, any religion. The state protects normal religious activities. No one may make use of religion to engage in activities that disrupt public order, impair the health of citizens or interfere with the educational system
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of the state. Religious bodies and religious affairs are not subject to any foreign domination."