XN000022-1979-01-19 — Page 20

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Vigorous implementation of a policy of rapid modemisation;

acceptance of all forms of normal intemational trading and financial

practice; the Treaty of Friendship with Japan; normalisation of

relations with the United States these have been great events,

increasing the prospects for both stability and trade in the area, and

for expanded contacts of all sorts between the People's Republic of

China and other nations. I am sure that most of us have been pondering

the implications for Hong Kong.

Of course Hong Kong has for long had the closest commercial

ties with Kwang tung and other parts of China.

It is one of our major sources of imports, three quarters to

two thirds of which are for consumption in Hong Kong: our major source

of fresh food; a growing source of hydrocarbon fuels; likely to be the

main supplier of coal for our new generation of power stations; an

important source of consumer goods generally; of course an invaluable

source of water on which a new agreement has recently been signed.

I hope China trading organisations will continue to develop

Hong Kong as a market. As Hong Kong's economy continues

to grow, it

will need more fuel, nore water and more food, and the demand for

manufactures, semi-manufactures, and consumer goods from China's new

industries will expand.

But when the Chinese Minister for Foreign Trade was here, he

appeared to envisage more than just an expansion of the sort of trade

we have had over recent years

/He spoke.....

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