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CONFIDENTIAL

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foundation for everything we are trying to

Like many of our neighbours in

achieve.

Asia, Hong Kong's economic success in the

past 40 years was based on trade with

Europe and North America.

These markets

remain important to us. But it is trade

with our neighbours in Asia which is now

giving our economy its dynamism:

Hong

Kong's

regional trade

expanded by an average of 18% in

real terms during the 1980s. For

1990 and 1991, the annual average

has been 16%.

Regional trade now

accounts for

about 62% of our

total trade;

of course, this is simply a part

In

of a more general phenomenon.

Intra-Asian trade as a whole grew

rapidly during the 1980s.

fact, the growth of internal

trade in Asia has been on average

twice as fast as trade with North

America and Europe;

CONFIDENTIAL

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