XN000022-1980-10-01 — Page 13

WEDNESDAY, OCTOBER 1, 1980

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SINO-BRITISH RELATIONS WERE NOW SETTLED INTO A PATTERN OF FRIENDLY CO-OPERATION, HE SAID. THIS WAS ALSO TRUE OF THE RELATIONSHIP AS IT AFFECTS HONG KONG AND HE THOUGHT THERE WAS GROWING UNDERSTANDING OF THE POSITIVE PART THAT HONG KONG COULD PLAY IN THIS RELATIONSHIP AND IN OTHER ASPECTS.

+OUR DEALINGS WITH THE MANY OFFICIALS OF THE CHINESE PEOPLE'S REPUBLIC IN HONG KONG CONTINUE TO BE ON A BASIS WHICH IS BOTH POSITIVE AND SATISFACTORY, HE SAID.

SIR MURRAY NOTED THE EXTENT TO WHICH OUR BUSINESSMEN WERE ENGAGING IN COMPENSATION DEALS AND JOINT VENTURES IN CHINA HAD CONSIDERABLY EXPANDED.

HE ALSO HOPED THAT WITH IMPROVED COMMUNICATIONS, HONG KONG COULD PLAY AN INCREASING PART IN THE GROWING TOURIST' INDUSTRY OF CHINA.

AS THE NEW ECONOMIC POLICIES OF CHINA BECOME CLEARER AND FIRMER SO BUSINESS INTEREST IN CHINA WILL EXPAND, HE SAID.

INEVITABLY THIS WILL INCREASE INTEREST IN THE ROLE WHICH HONG KONG CAN PLAY IN THIS PROCESS,

+1 HAVE NO DOUBT THAT ON THE ONE HAND THIS WILL MEAN THAT SOME ENTERPRISES NOW IN HONG KONG WILL TAKE ADVANTAGE OF THE LOWER LAND AND LABOUR COSTS IN GUANGDONG ON THE OTHER, THAT FIRMS AND INDUSTRIES WILL OPEN UP IN HONG KONG WHICH OTHERWISE WOULD NOT HAVE DONE SO, HE SAID.

+THERE IS NOTHING IN THIS RAPIDLY EVOLVING SITUATION WHICH WE HAVE TO FEAR,,+ SIR MURRAY SAID, ADDING BUT NATURALLY IT INVOLVES NEW PROBLEMS AS WELL AS NEW BENEFITS.

+ IT IS THEREFORE IMPORTANT THAT WE SHOULD KEEP IN CLOSE TOUCH WITH THE PROVINCIAL GOVERNMENT OF GUANGDONG AND FIND WAYS BY WHICH ANY NEW PROBLEMS CAN BE SOVED BY MUTUAL CO-OPERATION. THIS WE ARE DOING. + SIR MURRAY SAID

ON RELATIONS WITH THE UNITED KINGDOM, SIR MURRAY SAID THESE HAD BEEN MARKED BY DEEPENING UNDERSTANDING ON BOTH SIDES.

THE QUICK RESPONSE TO OUR APPEAL FOR REINFORCEMENTS WAS A CASE IN POINT. SO TOO WAS THE BRISK RESPONSE OF THE SECRETARY FOR TRADE TO THE EXCLUSION OF CATHAY PACIFIC FROM THE CABOTAGE ROUTE.

+OF COURSE IN SO CLOSE A RELATIONSHIP PROBLEMS ARE BOUND TO ARISE, BUT THE DEGREE OF MINISTERIAL INTEREST IN AND FIRST-HAND KNOWLEDGE OF HONG KONG HAS BEEN A GREAT HELP. HE SAID. SO TOO HAS THE WORK OF THE ALL-PARTY PARLIAMENTARY GROUP UNDER THE CHAIRMANSHIP OF SIR PAUL BRYAN.

SIR MURRAY SAID THE ECONOMIC BASIS OF THE RELATIONSHIP REMAINS SATISFACTORY, AND THIS IS OBVIOUSLY OF GREAT IMPORTANCE.

*WITH UK EXPORTS TO HONG KONG THIS YEAR LOOKING AS IF THEY WOULD TOP 500 MILLION POUNDS STERLING, AND TAKING INTO ACCOUNT

t INVISIBLE EARNINGS AND OTHER INDIRECT ADVANTAGES TO THE UK, BELIEVE THE MUTUAL ADVANTAGE OF THE RELATIONSHIP TO BE ON À SOUND EAS IS, HE SAID.

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