vast scheme of cheap public housing.

We have social and

political stability and by international standards a high level of law and order. We have a free press.

Of course,

we have excellent relations with China and excellent Sino/British relations over Hong Kong; and a high degree and steady increase in two-way economic co-operation between Hong Kong and other parts of China have been vital

links in this chain of characteristics which have produced our prosperity, links whose importance will steadily

increase.

These things, and our British connection, are

interrelated, and in combination they have produced a vital flame that has fired men and women to risk and work for Hong Kong's growth, and to build up and maintain investment, employment and services in this tiny area; that vital flame is confidence, and is our most precious asset.

Honourable Members, much of our time in this Council

is spent in the day-to-day business of legislation, but I have thought it right on this occasion to speak of fundamentals. They have been guarded well over the past 30 years and their effect on the lives of people in Hong Kong and on what Hong Kong can offer are there for all to see. I have every confidence that your wisdom and dedication will continue to preserve them, and with them the continued growth of the prosperity of the people of Hong Kong.

I thank Members for their advice and help over these

years.

I am sure that Sir Edward Youde is encouraged by the knowledge that he too will be able to count on you, and that he will be supported by one of the finest public

services in the world. He is a man of massive qualifications, known to most of you, and who knows Hong Kong as well as China, London and America. Though I am sad to leave, I am glad to hand over to a successor with such massive qualifications, probably the most senior official ever to be appointed Governor.

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