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the greatly improved relations between the United Kingdom

and China over Hong Kong and the acceptance of the Chinese

Government that Hong Kong has a major part to play in the

modernisation of China. This in turn is only one facet of

the great change in personalities and policies that have

come to pass in China itself and these have greatly

increased confidence, and hope in the whole East Asian

region, not least in both Japan and the countries of

ASEAN. But the impact in Hong Kong has been greatest

because it is closest and has led to both a renewal of

confidence and a rapid influx of firms who rightly see

in Hong Kong a platform from which to do business in Hong

Kong itself, in China and in this growth area of the

Western Pacific and South China Sea.

Our host tonight, the Hong Kong and Shanghai

Bank, has of course worldwide interests, interests which

have been greatly strengthened by its union with Marine

Midland, but its roots are in Hong Kong, it is the Hong

Kong Government's banker, and it is a bank of note issue.

It also performs as a lender of last resort, some of the

functions of a central bank. I am convinced that developments

over the last five years have shown that Hong Kong and its

banks have a role to play in the long-term future of China, as no

doubt it has in the future of clients all over the world.

celebrating its first 100 years in New York, I look forward

with confidence to the century to come.

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