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THURSDAY, NOVEMBER 6, 1986
+ THE VERY HIGH GROWTH RATES SEEN IN THE PERIOD 1978 TO 1985 REPRESENTED LARGELY A RELEASING OF PENT-UP DEMAND AND THE RE-ESTABLISHMENT OF THE NATURAL LEVEL OF TRADING BETWEEN HONG KONG AND ITS ECONOMIC HINTERLAND. THUS, THE GROWTH RATES ACHIEVED WERE EXAGGERATED BY THE VERY LOW INITIAL BASE AND COULD NOT BE EXPECTED TO CONTINUE IN THE LONG RUN, HE NOTED.
MR YAXLEY ALSO POINTED OUT THAT THE INCREASED TARIFFS AND STRICT CONTROLS ON THE USE OF FOREIGN EXCHANGE IMPOSED BY THE CHINESE GOVERNMENT AS A RESULT OF TRADE IMBALANCE HAD HAD THE EFFECT OF CHECKING SHARPLY THE INFLOW OF GOODS.
+ DESPITE A SIMULTANEOUS EXPORT DRIVE AND SEVERAL DEPRECIATIONS IN THE EXCHANGE RATE OF THE REMINBI, THE EFFECT HAS ONLY BEEN TO CHECK THE RATE OF DETERIORATION OF THE TRADE BALANCE. THUS, IN THE SHORT RUN, UNTIL THE PRESENT IMBALANCE IS CORRECTED, THE PROSPECTS FOR EXPORTS TO CHINA SEEM LIMITED, HE SAID.
HOWEVER, HE STRESSED THAT ONCE THE IMBALANCE WAS CORRECTED, THE NEEDS OF CHINA'S +FOUR MODERNISATIONS+ PROGRAMME AND ITS REQUIREMENTS FOR IMPORTED TECHNOLOGY SHOULD RESULT IN GOOD GROWTH RATES OF EXPORTS TO CHINA WHICH SHOULD BE MORE SOUNDLY BASED AND THUS SUSTAINABLE.
+ IN A WIDER CONTEXT, BECAUSE OF INFRASTRUCTURAL PROBLEMS IN CHINA AND BECAUSE HONG KONG WITH ITS SOPHISTICATED BUSINESS COMMUNITY IS AVAILABLE NEARBY, CHINA IS MAKING INCREASED USE OF HONG KONG, THUS HONG KONG IS FILLING AN IMPORTANT ROLE IN FACILITATING CHINA'S MODERNISATION AND ECONOMIC DEVELOPMENT.
+SPECIFICALLY, LOCAL ENTERPRISES IN HONG KONG ARE ENJOYING INCREASED BUSINESS OPPORTUNITIES FROM CHINA. FOREIGN ENTERPRISES. INCLUDING BRITISH ENTERPRISES, ARE ABLE TO MAKE USE OF HONG KONG AS AN INTERMEDIARY TO ENTER THE CHINA MARKET, TO ESTABLISH LINKS, OR TO MAKE INVESTMENTS, HE SAID.
TRADING IMAGE BEING PROTECTED ****
HONG KONG HAS TAKEN PARTICULAR CARE TO PROTECT ITS INTERNATIONAL TRADING IMAGE IN ORDER TO MAINTAIN THE INTEGRITY OF ITS TRADING SYSTEM, THE HEAD OF THE CUSTOMS TRADING STANDARDS INVESTIGATION BUREAU, MR JOHN HOWARD, SAID TODAY (THURSDAY).
SPEAKING TO A GROUP OF STUDENTS OF THE SWIRE SCHOOL OF DESIGN AT THE HONG KONG POLYTECHNIC, MR HOWARD SAID THE GOVERNMENT RECOGNISED THAT THE INFRINGEMENT OF INDUSTRIAL PROPERTY RIGHTS UNDERMINED INTERNATIONAL TRADE AND INDUSTRIAL
AND INTELLECTUAL CO-OPERATION.
/HE SAID