"Of course,
like all countries in the world that depend
on trade, Hong Kong has been hit by the recession.
But, despite
sone difficulties in the latter half of 1974 and early 1975, we have
weathered the storm better than most and are now definitely on the
upturn again.
"One consequence of the recession was that we virtually
eliminated inflation in Hong Kong last year, with the cost of living
index increasing as little as 2 per cent. Our balance of payments
has also remained in good shape throughout this experience and we have,
for example, managed to absorb a three-fold increase in the cost of
our imports of oil products. 1976 should see a continuation
of the recovery, helped by the upturn which is already apparent
in the United States and to a lesser extent in Western Europe.
"I should like to say a word about the nature of the
Government here and of our society. By force of circumstances which are
well understood, Hong Kong cannot have an elected Government. Yet ong
Kong is in most ways the freest society in Asia, with complete freedom
of expression in the press, radio and television and an independent
judiciary. The way in which, as a substitute for democracy, we try to
achieve a consensus for our policies and seek to be responsive to the
wishes of the people is a fascinating and constantly evolving story.
"An essential element for Hong Kong's future prosperity is the
relationship with China. Relations between Britain and China are good.
They have been developing steadily since the exchange of Ambassadors
between London and Peking in 1972 and, in particular, the friendly and
practical way in which it has been possible to deal with matters
affecting Hong Kong has made a considerable contribution to stability
and also to business confidence here.
/So, in the end..
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