XN000022-1982-04-28 — Page 4

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However that may be the Government, of which you are such a vital part, is judged a success by the world. In spite of deficiencies largely thrust upon it, Hong Kong is judged a success.

What is it that has enabled

this tiny and desperately overcrowded part of the land mass of China to become one of the greatest concentrations if industrial production, finance and communications in the world? There are other crowded communities with

a harbour and little else, which have not achieved comparable growth prosperity and international respect. Obviously, in the first place the character of its people, and those who direct and man the many units of our economic, social and political life. think, Hong Kong's prosperity depends on a whole series of interrelated elements, all of which we have succeeded in guarding. We have a fine harbour, but we have kept

But also, I

it a free port; we have a system of law whose practice is understood domestically and internationally, administered by a judiciary that is independent; we have a currency that is backed as to over 100% and is convertible and acceptable; we maintain a fiscal environment which is exceptionally predictable in the extraordinarily low burdens it imposes, and is free from ideological bias. We have maintained access to markets overseas through our membership, via the United Kingdom, of the General Agreement on Tariffs and Trade with all the safeguards that this contains; we have financial services on a scale and of an expertise that rank third in the world; we maintain freedom to invest, to work, to employ and to earn, and to do what one will with the proceeds, with the minimum

Our of restriction necessary to prevent abuse. administration is efficient by world standards and its policies have been kept free from the sudden shifts and changes that affect most other governments; we have a net of social security which, though incomplete, removes from the unfortunate denial of medical treatment, education, subsistence or shelter if need is proved; and we have a

/vast scheme.