HONG KONG IN TOUCH WITH THE WORLD
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The development of Hong Kong as an entrepôt in general, and for China in particular, has been both cause and effect of its evolution as a financial, commercial, communications and business centre in Asia and its efficiency as a transhipper of goods: more than 56 000 aircraft movements a year, and the arrival and departure of 137 million net registered tonnes of shipping. Some 47.5 million tonnes of sea cargo went in or out in 1984, along with 417 000 tonnes of air cargo. Another 4.9 million tonnes of cargo went to and from China by land in the same year.
For Hong Kong's overseas trade, 1985 was a difficult year, with the notable exception of Hong Kong-China trade. Presenting his revised estimates for economic growth in late September, the Financial Secretary, Sir John Bremridge, noted that while domestic exports in the first half of the year had been down, re-exports were up, there was a low inflation rate and virtually no unemployment. Sir John also noted that 1984 had been an exceptional year for domestic exports and, given the state of demand in most of Hong Kong's markets, it had, in retrospect, been unrealistic to expect as good a performance in 1985. Com- paratively, Hong Kong had done well, though the slowing in the growth of visible trade was also expected to see a drop in net exports of services such as shipping, air transport, insurance and finance. In the light of this, and the possibility of a fall in the growth rate of re-exports in the second half of the year, Sir John adjusted his forecast of the growth rate in real terms of the gross domestic product in 1985 to 4 to five per cent, down from a budget forecast of about seven per cent.
It was also pointed out that a Hong Kong in touch with the world was a Hong Kong reliant on the world, and as always vulnerable to external forces. Among the most dangerous of these was the call for further protectionist measures, especially in the United States. Measures being considered in this area would, if they became law, undermine not only world textile trade, but also the Multi-Fibre Arrangement and the General Agreement on Tariffs and Trade.
So 1985 has seen Hong Kong begin building a future on the solid foundation laid by the Joint Declaration. However, the growing cloud of international protectionism remains a positive threat to a territory which must trade to survive, and which throws up no walls of its own to the import of other people's exports. The financial services sector in Hong Kong remains equally open to the rest of the world.
Hong Kong believes that any extension of protectionist measures would not only be damaging to world trade as a whole, but doubly unfair to a territory which itself imposes no restrictions. The fight against protectionism, and the encouragement of freer world trade, will remain vital goals for Hong Kong now and in the future.
Given success in this fight, Hong Kong will be well-placed to fulfil what its people believe to be its ultimate destiny – to be the regional capital city of the Far East. Thus Hong Kong, in touch with the world, will have acquired an additional dimension.