A VISION
OF THE FUTURE
Annual Address by the Governor, Sir David Wilson, KCMG, to the Legislative Council on October 11, 1989
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SINCE I last addressed the Council at the beginning of a new session, we have been through difficult times together. We have all been forcefully reminded how vulnerable Hong Kong is to developments which occur outside our borders over which we have no control.
In May and June, confidence in Hong Kong was badly shaken by the tragic events in China. People became more nervous about their future. Investors have shown signs of being more cautious in assessing the territory's prospects. So we have a new challenge to meet and new problems to overcome. But this is not the first crisis that Hong Kong has had to confront. When we have faced difficulties in the past we have emerged with new confidence and strength. Already there are ample signs that Hong Kong is showing its usual resilience; that we are facing up to our problems and finding solutions to them.
Hong Kong Today
The Effect of Events in China
The tragic events in China had a traumatic effect on Hong Kong: an effect made all the more direct by the impact of television. Much has been written and said about those events, both at the time and since. I do not intend to add to it now. The important point for us is that what happened in China created increased concern about the arrangements for Hong Kong's future. A mark of this was the significant increase in applications for emigration and the widespread demands for the right of abode in the United Kingdom. We have also seen intensified discussion about the right pace of progress towards a directly-elected legislature and calls for the early introduction of a Bill of Rights. And the draft Basic Law has come under renewed scrutiny.
Despite this uncertainty and worry on the political front, our economy showed itself to be robust. Once again, we have been reminded how much our survival depends on the resilience of our businessmen and our workforce. The tourist industry was affected, largely because of the wholesale cancellation of tours to China. But our manufacturing sector was relatively unscathed; and economic links with China, especially with Guangdong Province, have remained strong. Our newly re-organised financial institutions weathered the crisis and emerged with their reputations enhanced. Our linked exchange rate system proved its worth at a testing time.
The overall economic effect on Hong Kong of the events in China will probably be a slight check to the rate of our economic expansion. The Financial Secretary's earlier estimate was that our GDP would grow by six per cent this year, compared to seven per cent in 1988. This forecast has now been adjusted slightly downwards. But, even with this