ERIT EMS WASHINTUN I
TUE 04 THI
33
20.04
CONFIDENTIAL
2
2.
THE GOVERNOR THANKED THE PRESIDENT FOR GIVING THE TIME TO SEE HIM. HE SAID THAT HE WOULD EXPLAIN TO HIM THE PITCH HE WAS GOING TO TAKE IN PUBLIC AND PRIVATE. THIS WOULD HAVE TO BE SEEN AGAINST THE FOLLOWING BACKGROUND
(A) HONG KONG'S PROSPERITY AND STABILITY WOULD DEPEND ON THE RELATIONSHIP BETWEEN CHINA AND UNITED STATES OVER THE MEDIUM AND LONG TERM,
(B)
THE OPENING UP OF THE ECONOMY OF CHINA HAD POLITICAL
(C)
CONSEQUENCES,
CHINA HAD CHANGED FROM A "NORTH KOREAN ECONOMY" TO A SENSIBLE
SENSI MARKET ECONOMY. THIS WAS IMPORTANT FOR THE WORLD AS CHINA AND ASIA WOULD BE THE FUTURE GROWTH AREAS. A SUCCESSFUL AND
SENSIBLE MARKET ECONOMY IN CHINA WOULD BE IMPORTANT.
3. THE GOVERNOR SAID THAT HONG KONG HAD DEVELOPED TO BE THE DOOR
BETWEEN THE WORLD AND CHINA.
TRADE WAS THEREFORE IMPORTANT TO
HONG KONG. WHILE CHINA WAS HONG KONG'S LARGEST TRADING PARTNER, THE UNITED STATES WAS THE LARGEST MARKET FOR HONG KONG'S DOMESTIC EXPORTS AND THE SECOND LARGEST MARKET FOR HONG KONG'S RE-EXPORTS. NEARLY 130 HONG KONG FACTORIES WERE WHOLLY OR PARTLY OWNED BY US INTEREST EMPLOYING 23,400 WORKERS. THERE WERE 15 US OWNED BANKS IN HONG KONG, AND 21 US INSURANCE COMPANIES.
THERE WAS CONSIDERABLE
SNFIDENTIAL
3