XN000022-1984-02-17 — Page 5

FRIDAY, FEBRUARY 17, 1984

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HIGH LEVEL OF INVESTMENT INTEREST IN HONG KONG но

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THERE HAS BEEN A CONTINUING HIGH LEVEL OF INTEREST IN INVESTMENT IN HONG KONG, WHICH IS BEING INCREASINGLY RECOGNISED AS ONE OF THE MOST DYNAMIC AND PROFITABLE PLACES IN THE WORLD TO DO BUSINESS, THE SECRETARY FOR TRADE AND INDUSTRY, MR E.P. HO SAID TODAY.

THE NUMBER OF SUBSTANTIAL INDUSTRIAL INVESTMENT ENQUIRIES DEALT WITH BY THE DEPARTMENT WENT UP BY 12 PER CENT IN 1983 AS AGAINST 1982 - TO 780 FROM 695, MR HO TOLD A LUNCHEON MEETING OF TRADE COMMISSIONERS REPRESENTING 20 COUNTRIES, IN HONG KONG.

MR HO SAID THAT THE DEPARTMENT CURRENTLY HAS SOME 440 ACTIVE INDUSTRIAL INVESTMENT FILES.

+DECISIONS TO PROCEED WERE MADE IN RESPECT OF 17 PROJECTS IN 1983, AND FAVOURABLE DECISIONS FOR AT LEAST ANOTHER 26 PROJECTS WERE EXPECTED WITHIN THE NEXT 12 TO 18 MONTHS, HE SAID.

IN ADDITION, HE SAID, SOME MANUFACTURERS ALREADY ESTABLISHED HERE ARE CURRENTLY EXPANDING THEIR EXISTING OPERATIONS, AND THESE INCLUDE SOME WELL-KNOWN INTERNATIONAL NAMES. IN SOME CASES, THE AMOUNT OF INVESTMENT IS VERY SUBSTANTIAL, HE SAID.

MR HO SAID THAT HONG KONG WAS POSSIBLY UNIQUE IN TODAY'S REGULATED WORLD IN ITS ADHERENCE +NOT SIMPLY TO THE PRINCIPLES BUT TO THE PRACTICE OF A FREE MARKET ECONOMY.+

+WE APPLY THIS PHILOSOPHY NOT ONLY TO OUR TRADING PRACTICE BUT ALSO IN OUR POLICY TOWARDS MANUFACTURING INDUSTRY, MR HO SAID.

REFERRING TO HONG KONG'S INTERNATIONAL TRADE FIGURES, MR HO SAID THAT 1982-83 YEAR-ON-YEAR GROWTH RATE OF DOMESTIC EXPORTS IN REAL TERMS WAS ABOUT 20 PER CENT IN THE FOURTH QUARTER-UP FROM 18 PER CENT IN THE THIRD QUARTER, 14 PER CENT IN THE SECOND QUARTER AND THREE PER CENT IN THE FIRST QUARTER.

TAKING 1983 AS A WHOLE, DOMESTIC EXPORTS GREW BY 26 PER CENT

IN VALUE TERMS AND BY ABOUT 14 PER CENT IN REAL TERMS.

MR HO ALSO SAID THAT THE ESTIMATED GROWTH RATE OF THE GROSS DOMESTIC PRODUCT FOR 1983 HAD BEEN RAISED TO NEARLY SIX PER CENT, FROM AN EARLIER ESTIMATE OF FOUR PER CENT.

+ALL SIGNS ARE THAT THIS RECOVERY WILL CONTINUE.

+ IT IS THEREFORE VERY MUCH BUSINESS AS USUAL IN HONG KONG,+ MR HO SAID.

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