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ity guess is that, for as long as Hong Kong shipowners maintain

this responsiveness to demand and this sense of responsiblity to what is

under their charge, their prospects for the future are excellent. Hong

Kong, the background for their operations, will continue to prosper and I

think the capital markets will be able to continue to provide the funds for

them to acquire more ships. They will still have access to the efficient

shipyards of Japan and also Korea and probably eventually China. They will

still work to improve the quality of ong Kong's seamen. I see little

prospect of the nong Kong Government being forced by changing circumstances

to modify significantly its fiscal and economic policies. So I can see no

reason why our shipowners should not continue to develop and to operate

their fleets successfully.

I realise that all of us are preoccupied about the many uncertainties

which overhang world markets. Inflation, oil prices, tension between great

powers, threat of instability in the Middle East, the destabilising effect

of the policies of Vietnam, and finally fear of thet recession in the United

States of america which has long been predicted but has so far fortunately not

really materialised. Nevertheless in spite of all these factors, and this is

an area which has always lived with difficulties, I remain basically optimistic.

I beleive that what I have said about Hong Kong applies also to the prosperity

of this whole area. The developed countries of Europe and America have been

extraordinarily slow to appreciate its potential. But they are beginning to

do so now. And if I had to name only one of the many factors that have brought

this about, I would unhesitatingly refer to the situation of the Feople's

Republic of China. Its new relationship with the United States, Japan,

Europe and also with the countries of South East Asia, lifted a cloud of

uncertainty which hung over East asia for so long. horeover the statesman-

ship of its government's new economic and commercial policies have aroused

intense interest among all trading nations, and their implementation will

/steadily

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