8

To sum up, we are in the presence of new developments of

considerable significance that could affect the extent of our relations

with the People's Republic of China in respect of trade, industry,

tourism, communications and finance.

These possibilities are the subject of much rumour and

speculation, and the dimensions of the possibilities, opportunities,

and even problems, are likely to emerge only gradually as the months

go by.

Meanwhile, there are obvious advantages in the developments

that have already taken place or which we may expect. The friendly

and constructive spirit behind them is a source of confidence.

Moreover, people here welcome the modernisation programme and

welcome the prospect of being able to play a part in it. So on the

basis of mutual benefit, trust and respect, I suggest our attitude

should be one of constructive co-operation.

Hong Kong's Place in the Western Pacific Region

These developments have attracted to the Far East in general

and China in particular more commercial and financial attention from

the rest of the world than for a long time.

It is possible that this will shed on Hong Kong, too, an

Events in China will high-

enhanced interest as a place of business.

light its importance as a place on the edge of that great country.

/Hong Kong

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