XN000022-1982-11-23 — Page 2

TUESDAY, NOVEMBER 23, 1982

HONG KONG'S IMPORTANCE IN WORLD TRADE STRESSED

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HONG KONG OCCUPIES A POSITION OF STRATEGIC IMPORTANCE IN TERMS OF WORLD TRADE, THE ACTING SECRETARY FOR TRADE AND INDUSTRY, MR PETER TSAO SAID TODAY (TUESDAY).

IN A SPEECH HE DELIVERED ON OPENING THE PACIFIC BASIN ECONOMIC COUNCIL INTERNATIONAL MANAGEMENT SEMINAR, MR TSAO SAID: +SMALL AS WE ARE, OUR STRATEGIC IMPORTANCE IN TERMS OF WORLD TRADE AND COMMERCE IS WIDELY RECOGNISED. AND OUR POSITION IN THIS REGARD HAS BEEN FURTHER ENHANCED BY OUR PROXIMITY TO CHINA, AND OUR RELATIONS WITH CHINA.+

HE POINTED OUT THAT HONG KONG NOT ONLY SERVES THE WEST AND

IT ALSO PROVIDES USEFUL SERVICES TO THE NORTH OF HONG KONG'S BORDER.

EAST

+PERHAPS THE BEST WAY TO ILLUSTRATE HONG KONG'S POSITION IN RELATION TO CHINA IS TO REFER TO WHAT THE JAPANESE INVESTORS CALL "THE NORTHERN AND THE SOUTHERN STRATEGIES'.

*THE JAPANESE WOULD ADOPT WHAT THEY WOULD CALL THE NORTHERN STRATEGY IF THEY ARE TO INVEST IN, OR TO SELL TO CHINA, PROJECTS INVOLVING HEAVY INDUSTRIES, FOR THAT THEY GO DIRECTLY TO BEIJING AND PERHAPS SPEND A PERIOD OF TIME THERE TO WORK OUT THE PROJECT.

+HOWEVER, WHEN THEY UNDERTAKE SMALLER SIZE PROJECTS, PARTICULARLY TRADING PROJECTS WITH CHINA, THEY ADOPT WHAT IS KNOWN AS THE SOUTHERN STRATEGY, AND THAT IS THROUGH HONG KONG WHERE VARIOUS AGENCIES FROM CHINA ARE FULLY REPRESENTED. THUS A NEW DIMENSION HAS IN FACT BEEN ADDED TO HONG KONG, HE EXPLAINED.

HE LISTED THREE REASONS WHY HONG KONG IS IMPORTANT I IN THE PACIFIC REGION.

(A)

HONG KONG IS A MODEL OF FREE ENTERPRISE OPERATING UNDER THE PRINCIPLE OF RULE OF LAW. IT IS A SOCIETY OF ENTERPRISING, HARD WORKING AND

"KIC

(B)

(c)

HAPPY PEOPLE. IT IS THEREFORE VERY MUCH A MODEL OF WHAT CAN BE ACHIEVED, AND HOW IT CAN BE

MAINTAINED;

IT PROVIDES AIR, SEA AND COMMUNICATION LINKS WITH THE EAST AND THE WEST. THESE LINKS ARE NOT ONLY EFFICIENT BUT ARE ALSO BACKED UP BY AN INFRASTRUCTURE WHICH ENSURES AN UNINTERRUPTED OPERATION OF THESE SERVICES:

IT PROVIDES THE FACILITIES OF A DOOR INTO AND FROM CHINA AND THEREFORE IS WELL PLACED TO SERVE CHINA'S NEEDS ARISING FROM HER MODERNISATION PROGRAMME.

/TURNING TO