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TUESDAY, JANUARY 29, 1985
I THINK THE SECOND THING TO KEEP IN MIND IS THAT MOST PEOPLE IN HONG KONG REGARD HONG KONG AS THEIR HOME, AND THEY LIKE IT. THEY DO NOT ONLY LIKE THE LOW TAX RATE, ALTHOUGH THAT IS VERY POPULAR, 1 MAY SAY, BUT THEY LIKE THE LIFE-STYLE AND THEIR FAMILIES ARE THERE. SO THEY ARE NOT LOOKING TO LEAVE UNLESS THEY ARE FORCED TO. AND THE GREAT ADVANTAGE OF THE AGREEMENT IS THAT IT PROVIDES THAT THE IR LIFE-STYLE WILL CONTINUE. THE LAW WILL CONTINUE TO BE THE LAW OF HONG KONG. THE COURTS WILL STILL BE ABLE TO GIVE THEM PROTECTION, AS THEY DO NOW. AND MANY OF THEM, I THINK, HAVE FOUND THIS A SUFFICIENT REASON TO SAY, WELL, IF THE LIFE-STYLE CONTINUES WHY SHOULD I LEAVE?+ BUT, ON THE OTHER HAND, THERE ARE ALWAYS THOSE WHO WILL DOUBT. SOME WILL GO BUT, EQUALLY, SOME ARE ALREADY, I THINK, COMING BACK.
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THE RT HON THE EARL OF LIMERICK, (KLEINWORT BENSON LIMITED) : CAN YOU COMMENT ON THE SIGNIFICANCE OF THE SPECIAL ECONOMIC ZONES, AND THE WAY IN WHICH THE PRC LOOKS AT HONG KONG ACROSS THIS ZONE, WHETHER HONG KONG IS LOOKING AT A ZONE BEYOND THE PRC. WHICH IS GOING TO HAVE THE MOST EFFECT ON WHAT?
SIR EDWARD I WOULD THINK THAT BOTH WOULD HAVE AN EFFECT ON EACH OTHER. THE SHENZHEN SPECIAL ECONOMIC ZONE HAS DEVELOPED VERY RAPIDLY THERE IS A LOT OF DEVELOPMENT GOING ON UP THERE; AND THERE IS A CERTAIN AMOUNT OF HONG KONG INVESTMENT IN IT. I THINK THE RELATIONSHIP ACROSS THE BORDER WILL GROW, AND THE CHINESE GOVERNMENT, AFTER ALL, IS NOW UNDER THE AGREEMENT COMMITTED TO THE POLICY OF CO-OPERATION AND MAINTAINING THE PROSPERITY AND STABILITY OF HONG KONG, SO THEY WILL WANT TO DO THAT, AND THEY WILL NOT BE LOOKING FOR THE SHENZHEN ECONOMIC ZONE DOING ANY HARM. I AM ALWAYS A BELIEVER THAT IT IS MUCH BETTER TO HAVE TWO THRIVING COMMUNITIES SIDE-BY-SIDE BOTH BENEFIT, EVEN IF THEY COMPETE. SO I WOULD EXPECT TO SEE SOME DEGREE OF COMPETITION, THOUGH NOT A GREAT DEAL, AND I WOULD EXPECT TO SEE A MUTUALLY VALUABLE RELATIONSHIP GROWING BETWEEN THE TWO.
ON THE POLICY OF THE CHINESE GOVERNMENT TOWARDS ECONOMIC ZONES, WE HAVE A BIGGER EXPERT THAN ME HERE IN THE AMBASSADOR. BUT I DO NOT THINK HE WOULD CONTRADICT ME WHEN I SAY THAT IT IS A POLICY WHICH THE CHINESE, HAVING ESTABLISHED THE ORIGINAL THREE ZONES ARE NOW EXPANDING IN THE 14 CITIES WHICH THEY HAVE OPENED, NOT IN EXACTLY THE SAME WAY, BUT SIMILARLY AND IT MUST HAVE BEEN ENOUGH OF A SUCCESS IN THE BEGINNING TO EXPAND IT TO THE NEW PHASE.
LORD GEDDES, (HOUSE OF LORDS): AS A NON-STOCK BROKER, PERHAPS I COULD ASK A STOCK BROKING TYPE QUESTION. SIR EDWARD, WHAT BEFITS DO YOU ANTICIPATE FROM THE COMBINED HONG KONG STOCK
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EX HANGE, AND DO YOU EXPECT THAT COMBINED EXCHANGE TO CONTINUE IN THAT GUISE BEYOND 1997?
/SIR EDWARD :