XN000022-1984-02-27 — Page 6

MONDAY, FEBRUARY 27, 1984

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IT IS BUSINESS AS USUAL IN HK

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YAXLEY

THE DIRECTOR OF INDUSTRY, MR JOHN YAXLEY TODAY (MONDAY) TOLD A DELEGATION OF SWEDISH BUSINESSMEN THAT THE ECONOMIC PERFORMANCE AND DEVELOPMENT PROGRAMME IN HONG KONG CLEARLY DEMONSTRATED THAT HONG KONG WAS VERY MUCH IN BUSINESS AND INTENDED TO STAY THAT WAY.

HE WAS SPEAKING AT THE SWEDISH OIL INDUSTRY SYMPOSIUM JOINTLY ORGANISED BY THE SWEDISH CONSULATE GENERAL IN HONG KONG AND THE SWEDISH TRADE COUNCIL IN SWEDEN TO DISCUSS OPPORTUNITIES FOR COOPERATION BETWEEN SWEDEN AND HONG KONG WHICH MAY RESULT FROM THE EXPLORATION AND DEVELOPMENT OF THE SOUTH CHINA SEAS OFF-SHORE OIL FIELDS.

+DESPITE, IN THE MINDS OF SOME, PRESENT UNCERTAINTIES, IT IS, HOWEVER, VERY MUCH BUSINESS AS USUAL IN HONG KONG. WE REMAIN FORWARD LOOKING AND OPTIMISTIC,+ MR YAXLEY SAID.

HE POINTED OUT THAT TRADE WAS BOOMING AS HONG KONG'S MAIN MARKETS OVERSEAS PULLED OUT OF RECESSION AND ORDER BOOKS WERE FULL.

+THE YEAR-ON-YEAR GROWTH RATE IN REAL TERMS OF DOMESTIC EXPORTS WAS ABOUT 20 PER CENT IN THE LAST QUARTER OF 1983, UP FROM 18 PER CENT IN THE THIRD QUARTER AND 14 PER CENT IN THE SECOND QUARTER. DOMESTIC EXPORT PERFORMANCE IS EXPECTED TO REMAIN STRONG FOR AT LEAST THE NEXT SIX MONTHS.

+THE GROSS DOMESTIC PRODUCT FOR 1983 HAS BEEN REVISED UPWARDS FROM FOUR PER CENT TO SIX PER CENT, A FIGURE WHICH IN A DIFFICULT YEAR FOR EVERYBODY, COMPARES WELL WITH GROWTH RATES IN NORTH AMERICA AND WESTERN EUROPE, HE SAID.

HONG KONG MANUFACTURERS WERE CONTINUING TO INVEST, PARTLY TO MEET THE CURRENT UPSURGE IN ORDERS, THOUGH WITH PERHAPS A LITTLE MORE CAUTION THAN PREVIOUSLY, HE POINTED OUT.

+WE IN THE DEPARTMENT OF INDUSTRY KNOW OF 50 MANUFACTURERS AMONG WHOM ARE A NUMBER OF OVERSEAS COMPANIES CURRENTLY EXPANDING THEIR OPERATIONS, SOME OF THEM AT A COST RUNNING INTO TENS OF MILLIONS OF HONG KONG DOLLARS, HE ADDED.

MR YAXLEY SAID ALTHOUGH FOREIGN INVESTMENT ACCOUNTED FOR ONLY 10 PER CENT OF HONG KONG'S TOTAL INDUSTRIAL PRODUCTION, IT HAD BEEN ESPECIALLY VALUABLE IN ASSISTING HONG KONG TO DIVERSIFY AND UPGRADE ITS PRODUCTS.

+ THE LEVEL OF OVERSEAS INTEREST IN HONG KONG REMAINS ENCOURAGINGLY HIGH. THIS INTEREST HOWEVER COMES LARGELY FROM NORTH AMERICA AND JAPAN, RATHER THAN FROM EUROPE. HOWEVER, EUROPE WITH ITS EXPERIENCE IN THE NORTH SEA OFFSHORE OIL INDUSTRY HAS A GREAT DEAL OF EXPERTISE WHICH WILL BE INVALUABLE FOR THE OFFSHORE OIL INDUSTRY IN THIS REGION, AND I AM SURE THAT DEVELOPMENT IN THIS AREA WILL OFFER MANY PROFITABLE OPPORTUNITIES, MR YAXLEY SAID.

/ON THE