XN000022-1975-10-21 — Page 2

TUESDAY, OCTOBER 21, 1975

IMPORTANCE OF HONG KONG'S BANKING SYSTEM STRESSED ** * * * * *

THE COLONIAL SECRETARY, SIR DENYS ROBERTS, TODAY SPOKE OF THE IMPORTANCE OF HONG KONG'S BANKING AND FINANCIAL SYSTEM TO LOTH HONG KONG AND TO BUSINESS IN THE ASIAN-PACIFIC REGION GENERALLY.

SPEAKING AT THE OPENING OF THE FINANCIAL TIMES ASIAN PUSINESS IN 1976+ SEMINAR, SIR DENYS SAID THAT SINCE 1970, THE LANKS TOTAL ASSETS HAVE RULTIPLIED THREE TIMES, FROM ABOUT US$4 BILLION TO US$12 BILLION.

+THERE IS A RAPID TURNOVER OF TRANSACTIONS, WITH NEARLY US$1 BILLION FLOWING INTO AND OUT OF HONG KONG ÉVERY WEEK. 11IS MONEY NOT ONLY FINANCES OUR OWN TRADE AND SERVICES- MUCH OF 11 IS LENT OVERSEAS BY HONG KONG BASED BANKS AND FINANCE COMPANIES, PARTICULARLY TO DEVELOP AND ASSIST TRADE AND

INVESTMENT WITHIN THE REGION.✨

SIR DENYS POINTED OUT THAT MANY HONG KONG COMPANIES HAD ESTABLISHED SUBSIDIARIES IN ASIA AND HAD ENTERED JOINT VENTURES WITH COMPANIES ESTABLISHED IN OTHER COUNTRIES.

+GEOGRAPHICALLY AND AS A CENTRE OF COMMUNICATIONS, HONG KONG IS ONE OF THE KEY POINTS OF THE PACIFIC BASIN. TO THESE NATURAL ADVANTAGES IT ADDS EXPERIENCE AND SKILL IN INTERNATIONAL TRADING AND FINANCE. WE, THEREFORE, BELIEVE THAT HONG KONG WILL CONTINUE TO PLAY A SIGNIFICANT ROLE IN THE PROSPERITY AND DEVELOPMENT OF THE SOUTH EAST ASIAN REGION, HE ADDED.

REFERRING TO TRADE WITH THE ESCAP REGIONAL COUNTRIES, THE COLONIAL SECRETARY SAID THAT IN 1974 HONG KONG'S IMPORTS FROM THESE COUNTRIES AMOUNTED TO OVER US$2.3 BILLION, AGAINST DOMESTIC EXPORTS TO THE ESCAP AREA OF UNDER US$600 MILLION AND RE-EXPORTS OF ABOUT US$400 MILLION.

→THUS OUR VISIBLE TRADE DEFICIT WITH THE REGION, OF OVER US$1.3 BILLION, HAD TO BE PAID FOR IN CONVERTIBLE FOREIGN EXCHANGE.+

THEREFORE, HE SAID, HONG KONG IS A SUBSTANTIAL SOURCE OF FOREIGN EXCHANGE FOR THE REGION AS A WHOLE, A FACTOR WHICH IS OF BENEFIT TO ITS ECONOMIC GROWTH.

IN CONCLUSION, SIR DENYS SAID THAT THE MOST IMPORTANT SINGLE FACTOR IN HONG KONG'S SUCCESS DURING THE PAST GENERATION IS THE REMARKABLE QUALITIES OF THOSE WHO LIVE HERE FOR A COMMUNITY SUCCEEDS NOT BY THE EFFICIENCY OF ITS INANIMATE THINGS, BUT BY THE WARMTH AND COLOUR AND VIGOUR OF ITS PEOPLE.

NOTE TO EDITORS: COPIES OF THE FULL TEXT OF THE COLONIAL

SECRETARY'S SPEECH ARE BOXED SEPARATELY.

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