9
ON
NEGOTIATIONS IN THE RECESSION YEAR OF 1982 WHICH
IMPOSED A SHARP BRAKE ON THE GROWTH OF OUR ECONOMY. IN
THE AUTUMN OF 1983 THE HONG KONG DOLLAR WAS SEVERELY
AFFECTED BY POLITICAL DOUBTS OVER THE COURSE OF THE
NEGOTIATIONS.
THROUGHOUT THE POPULATION OF HONG KONG
AND THE REST OF THE WORLD COULD ONLY GUESS AT WHAT THE
OUTCOME OF THE NEGOTIATIONS MIGHT BE BECAUSE THEY HAD
PERFORCE TO BE CONDUCTED IN CONFIDENCE IF THEY WERE TO
HAVE ANY CHANCE OF SUCCESS.
17.
WHEN IT EMERGED, THE SINO-BRITISH AGREEMENT
PROVED A TRIBUTE TO GOOD SENSE. IT OWED MUCH TO THE
IMAGINATION OF CHINESE LEADERS WHO RECOGNISED THAT, IF
THE CONFIDENCE ON WHICH THE STABILITY AND PROGRESS OF
HONG KONG DEPENDS IS TO BE MAINTAINED, HONG KONG NEEDS
TO CONTINUE WITH ITS OWN DISTINCTIVE ECONOMIC AND
SOCIAL SYSTEM.
18.
THE ESSENCE OF THE AGREEMENT IS THAT IT
PROVIDES FOR THE CONTINUATION OF ALL THOSE ELEMENTS
WHICH HAVE CONTRIBUTED TO HONG KONG'S SUCCESS IN THE
PAST, AS SUCH IT REMOVES MUCH OF THE UNCERTAINTY ABOUT
THE FUTURE, AND ENABLES THE BUSINESS COMMUNITY ONCE
MORE TO TAKE COMMERCIAL DECISIONS ON THE IR OWN MERITS.
FOR THOSE WHO ARE CONSIDERING HONG KONG AS AN OFFSHORE
BASIS TO EXPAND THE IR OPERATIONS. THE AGREEMENT SPELLS
OUT MANY OF THE GUARANTEES FOR INVESTMENT WHICH
FORMAL INVESTMENT PROTECTION AGREEMENTS NORMALLY SEEK
TO COVER.
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