XN000022-1980-11-03 — Page 2

MONDAY, NOVEMBER 3, 1980

SIR MURRAY: GREAT OPPORTUNITIES FOR UK EXPORTERS

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THE GOVERNOR, SIR MURRAY MACLEHOSE, AT A DINNER HOSTED IN LONDON BY THE HONG KONG GENERAL CHAMBER OF COMMERCE THIS EVENING TOLD A REPRESENTATIVE AUDIENCE OF BRITISH INDUSTRIALISTS. FINANCIERS AND OFFICIALS THAT HONG KONG'S

INDUSTRIAL. FINANCIAL

AND CONSTRUCTIONAL DEVELOPMENTS OFFER GREAT OPPORTUNITIES FOR UNITED KINGDOM EXPORTERS.+

+AND IF THEY USE HONG KONG AS A BASE, SO TOO DO THE MARKETS OF THE SOUTH WEST PACIFIC BASIN WITH EXTRAORDINARILY HIGH RATES OF ECONOMIC GROWTH AND THEIR COMPARATIVELY NEW-FOUND POLITICAL STABILITY.

+ BUT ABOVE ALL THERE IS A NEW BEGINNING, AN AWAKENING OPPORTUNITY, IN RELATIONS WITH CHINA. THE EVOLUTION OF A CONSTRUCTIVE AND CO-OPERATIVE RELATIONSHIP HAS BEEN QUICK BUT IS SOUNDLY BASED ON IMMEDIATE AND LONG-TERM MUTUAL BENEFIT,+ SIR MURRAY SAID.

THE FOLLOWING IS THE FULL TEXT OF THE GOVERNOR'S SPEECH:

+FIRST OF ALL I MUST CONGRATULATE MR NEWBIGGING ON A TOUR DE FORCE. I HAVE NEVER HEARD A BETTER EXPOSITION OF HONG KONG, ITS PROBLEMS AND ITS POSSIBILITIES.

HE HAS COVERED THE GROUND SO WELL THAT THERE ARE ONLY TWO

WOULD LIKE TO EMPHASISE BEFORE PROPOSING A TOAST TO OUR

POINTS GUESTS.

THE OBJECT OF OUR MISSION IS TO STIMULATE UNITED KINGDOM INTEREST IN SUPPLYING THE HONG KONG MARKET. WE BELIEVE THIS CAN BE DONE TO A GREATER EXTENT, AND TO BE IN OUR MUTUAL INTEREST. THE UNITED KINGDOM HAS ALREADY DONE WELL. SALES LAST YEAR WORTH £442M AND THERE IS A PROSPECT OF THEM TOPPING £500M THIS YEAR. MOREOVER TRADE STATISTICS OF THE UNITED KINGDOM'S SHARE OF TOTAL HONG KONG IMPORTS ARE MISLEADING BECAUSE THEY ARE HEAVILY DILUTED WITH FOODSTUFFS AND RAW MATERIALS. IT IS THE UNITED KINGDOM'S SHARE OF THE INDUSTRIAL GOODS MARKET WHICH IS SIGNIFICANT AND THIS UNITED KINGDOM PERFORMANCE IN HONG KONG IS ALREADY MARGINALLY BETTER THAN THE UNITED KINGDOM'S WORLD AVERAGE. I MAKE THIS POINT TO MEET ANY FEARS THAT THE HONG KONG MARKET IS TOO COMPETITIVE TO BE WORTH A TRY. OUR THEME ON THE CONTRARY IS THAT UNITED KINGDOM EXPORTERS WHO TAKE THE MARKET SERIOUSLY HAVE PROVED THEY CAN COMPETE AND ARE DOING SO TO THEIR PROFIT, AND THAT THERE IS ROOM FOR MANY MORE TO JOIN THEM.

SOME OTHERS MAY WONDER ABOUT THE FUTURE OF HONG KONG- WONDER IF THE MARKET IS WORTH BOTHERING ABOUT WONDER IF IT IS A DEAD END. WELL AS FOR BEING DEAD, I CAN ASSURE YOU THAT THERE IS NO COMMUNITY AND NO MARKET PLACE IN THE WORLD MORE ALIVE. IT IS NOT ONLY THE INDUSTRIAL AND FINANCIAL LIFE THAT IS SO VIRILE, BUT THE ENERGY AND CONFIDENCE OF PEOPLE THERE STRIKE THE ARRIVING TRAVELLER LIKE A PHYSICAL FORCE.

/AS FOR