2
I WILL ALSO BE PLEASED TO OFFER SOME INITIAL COMMENTS ON
WE SENATOR MCCONNELL'S BILL, THE U.S.-HONG KONG POLICY ACT. HAVE BEEN EXAMINING THE IMPLICATIONS OF 1997 FOR U.S.-HONG KONG
RELATIONS AND THIS BILL HAS HELPED US SHARPEN OUR OWN THINKING ON THIS ISSUE. THE ADMINISTRATION SUPPORTS THE GOALS OF THIS
LEGISLATION AND IS PLEASED THAT CONGRESS SHARES OUR INTEREST IN
THE FUTURE OF HONG KONG. WITH MODIFICATIONS, THIS LEGISLATION CAN MAKE A SIGNIFICANT CONTRIBUTION TO U.S. EFFORTS TO PREPARE
FOR HONG KONG'S REVERSION TO CHINESE SOVEREIGNTY ON JULY 1,
1997.
AS I WILL NOTE A BIT LATER, THE UNITED STATES HAS A VERY
SUBSTANTIAL STAKE IN THE SUCCESS OF HONG KONG'S TRANSITION, AND
U.S. POLICY HAS AN IMPORTANT ROLE TO PLAY IN ASSISTING THIS
PROCESS.
RENEWED CONFIDENCE
EVERYWHERE.
FIVE YEARS BEFORE ITS REVERSION TO CHINA, HONG KONG SEEMS
TO BE IN A NEW CYCLE OF GROWTH. IT APPEARS TO HAVE LARGELY
RECOVERED FROM THE BLOW TO ITS CONFIDENCE WHICH OCCURRED AFTER
THE TIANANMEN TRAGEDY IN JUNE 1989. SIGNS OF PROSPERITY ARE
EMIGRATION DECLINED SLIGHTLY IN 1991. ECONOMIC
GROWTH HAS RISEN TO FOUR PERCENT. UNEMPLOYMENT REMAINS VERY
LOW AT TWO PERCENT. HONG KONG'S REAL ESTATE MARKET IS UP
NEARLY 50% IN THE PAST YEAR. AGREEMENT HAS BEEN REACHED
BETWEEN BRITAIN AND CHINA ON A $16 BILLION PROJECT TO DEVELOP
NEW AIRPORT AND CONTAINER FACILITIES IN HONG KONG, AN
INFRASTRUCTURE ENHANCEMENT PLAN WHICH PROMISES TO BOOST