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are confident of their ability to do so in the future.

And we have a system of Government which is suited to

the territory's unique situation and which combines

maximum opportunity and reward for energy and inventiveness

and an already sound and steadily improving infrastructure

which shields the community from the harsher difficulties

to which we are otherwise committed. Our currency reserves

are strong, we are accustomed to a balanced budget, our

governmental debt is minimal. All these things in combination

give us a good basis from which to face the future.

The second factor is that Hong Kong's progress

has to be sustained not in isolation but in the context

of the region. The region is on the move and Hong Kong

is moving as part of it. The national growth rate figures

for the countries of the Western Pacific have been constantly

abnormally high by international standards and have every

prospect of remaining so and I sincerely believe that the

last two decades of this century are likely to be the era

of East and South East Asia. And Hong Kong occupies a

position at the centre of the communications of this region

and in the closest contact with the vast developments of

the People's Republic of China. The third reason is of course

the greatly

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