XN000022-1984-01-11 — Page 23

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WEDNESDAY, JANUARY 11, 1984

GOVERNOR REJECTS PESSIMISM ON HONG KONG'S FUTURE

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THE GOVERNOR, SIR EDWARD YOUDE, TODAY REFUTED JEREMIAMS WHO SEE HONG KONG AS A STAR ABOUT TO FALL+, SAYING THAT THE TERRITORY IS VERY MUCH A GOING CONCERN AND THERE IS NO REASON WHY IT SHOULD NOT REMAIN SO.

SIR EDWARD WAS SPEAKING IN NEW YORK WHERE HE ADDRESSED THE COUNCIL ON FOREIGN RELATIONS.

ON THE SINO-BRITISH TALKS HE CITED IN SUPPORT OF HIS VIEW, THE COMMON INTEREST OF CHINA AND THE UNITED KINGDOM IN MAINTAINING HONG KONG'S STABILITY AND PROSPERITY, THE CLOSE NATURE OF HONG KONG'S OWN RELATIONS WITH CHINA AND THE CONTRIBUTION IT COULD MAKE TO THE NATION'S MODERNISATION PROGRAMME.

+THE RELATIONS BETWEEN THE UNITED KINGDOM AND CHINA ARE GOOD AND THE RELATIONSHIP IS A DEVELOPING ONE, SAID SIR EDWARD. HONG KONG'S OWN RELATIONS WITH CHINA ARE CLOSE. IN TOTAL TRADE TERMS, CHINA IS NOW OUR SECOND LARGEST TRADING PARTNER, THE LARGEST SOURCE OF OUR IMPORTS AND THE FOURTH LARGEST DESTINATION FOR OUR DOMESTIC EXPORTS.

+MANY OF CHINA'S CORPORATIONS AND BANKS ARE ACTIVE IN HONG KONG AND WE HAVE A CLOSE WORKING RELATIONSHIP WITH THE AUTHORITIES OF NEIGHBOURING GUANGDONG ON A WIDE RANGE OF PRACTICAL MATTERS.

*THE NEWLY FORMED HONG KONG NUCLEAR INVESTMENT CORPORATION WILL, WITH THE SUPPORT OF THE HONG KONG GOVERNMENT, BE CLOSELY

INVOLVED IN THE NEW NUCLEAR POWER STATION TO BE BUILT BY THE CHINESE IN GUANGDONG PROVINCE CLOSE TO HONG KONG. THIS IS ONLY ONE EXAMPLE OF THE CONTRIBUTION WHICH HONG KONG SEEKS TO MAKE TO CHINA'S MODERNISATION PROGRAMME. IT IS PART OF THE MUTUALLY BENEFICIAL

ECONOMIC RELATIONSHIP MUCH VALUED BY BOTH SIDES.+

HE SAID THAT BOTH THE UNITED KINGDOM AND CHINA, IN TALKS ON THE FUTURE OF HONG KONG, HAD +FROM THE BEGINNING STATED THE IR AIM OF MAINTAINING ITS STABILITY AND PROSPERITY, A PHRASE WHICH SOME CYNICS MAY CALL HACKNEYED BUT WHICH HAS REAL MEANING FOR ALL THOSE INVOLVED IN THE TALKS IN PEK ING+.

HE SAID THAT SOME RECENT COMMENT +GIVES THE IMPRESSION THAT HONG KONG IS A STAR ABOUT TO FALL. ONE U.S. REPORT WHICH I RECENTLY READ STARTED WITH THE WORDS 'THE FALL OF HONG KONG SEEMS TO HAVE BEGUN'. WHILE WE HAVE OUR DIFFICULTIES AND THERE IS UNDERSTANDABLE ANXIETY IN HONG KONG ABOUT THE FUTURE, HONG KONG IS VERY MUCH A GOING CONCERN AND THERE IS NO REASON WHY IT SHOULD NOT REMAIN SO.+

HONG KONG IS A PLACE OF GREAT INTEREST TO THE UNITED STATES, SAID SIR EDWARD. IT IS AN OPEN MARKET FOR U.S. GOODS WITH NO RESTRICTIONS, NO RESTRAINTS, NO LIMITS ON THE REMITTANCE OF PROFIT OR CONTROLS ON FUNDS MOVING IN AND OUT.+

LISTING THE TERRITORY'S ADVANTAGES FOR U.S. INVESTMENT, HE WENT ON1 +HONG KONG IS ALSO LIVING PROOF OF THE MESSAGE WHICH YOUR GOVERNMENT IS KEEN TO SPREAD THAT DEVELOPING SOCIETIES CAN THRIVE IN A WORLD OF OPEN TRADE.+

/THE GOVERNOR