XN000022-1984-12-12 — Page 3

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WEDNESDAY, DECEMBER 12, 1984

RETAINED IMPORTS OF INDUSTRIAL AND OFFICE MACHINERY HAD INCREASED BY 26 PER CENT FOR THE FIRST EIGHT MONTHS OF 1984 COMPARED WITH A DROP OF FIVE PER CENT IN 1983. AND THE PROPERTY MARKET HAD ALSO INCREASED IN ACTIVITY.

MR LEE SAID THAT THE GREAT MAJORITY OF THE HONG KONG PEOPLE SUPPORTED THE AGREEMENT, NOT JUST BECAUSE THEY ACCEPTED THE POLITICAL REALITY BUT, MORE IMPORTANTLY, BECAUSE THEY REALISED THAT UPON FAITHFUL IMPLEMENTATION, THE AGREEMENT PROVIDED A VIABLE FRAMEWORK BASICALLY LITTLE DIFFERENT FROM THE ONE THEY NOW HAD.

MR LEE NOTED THE EXPRESSED CONCERN AND ANXIETY ABOUT IMPLEMENTATION OF THE AGREEMENT, BUT AGREED WITH SIR GEOFFREY THAT THE BEST GUARANTEE OF A COUNTRY'S PERFORMANCE WAS ITS OWN SELF-INTEREST.

HE REFERRED TO CHINA'S RECENTLY ANNOUNCED ECONOMIC REFORMS DESIGNED TO INJECT FREE ENTERPRISE, COMPETITION AND MARKET FORCÉS INTO ITS HIGHLY CENTRAL ISED ECONOMY.

HE ALSO POINTED OUT THAT THE FEATURES OF THESE REFORMS WERE CHARACTER ISTIC OF HONG KONG'S SYSTEM. HIS VIEW WAS THAT THE ROLE WHICH CHINA ENVISAGED FOR HONG KONG WOULD FIT IN NEATLY WITH THE COUNTRY'S OVERALL DEVELOPMENT STRATEGIES.

ON THE QUESTION OF WHETHER CHINA MIGHT ONE DAY REVERT TO ITS FORMER CLOSED DOOR POLICY, MR LEE SAID THAT THE COUNTRY'S PRESENT ECONOMIC DRIVE HAD BEEN VERY SUCCESSFUL IN BRINGING FASTER GROWTH AND IMPROVED QUALITY OF LIFE FOR THE PEOPLE. CHINA WOULD HAVE NOTHING TO GAIN, POLITICALLY AND ECONOMICALLY, BY DEPARTING FROM A POLICY WHICH HAD BEEN SO WELL RECEIVED BOTH AT HOME AND ABROAD.

THE MAJOR CHALLENGE TO THE TERRITORY IN THE NEXT 12 YEARS WOULD BE THE BUIDLING UP OF AN ELECTED LEGISLATURE CAPABLE OF EFFECTING SELF-ADMINISTRATION AND RESPONDING TO THE REAL NEEDS OF THE PEOPLE, HE SAID.

+IN THIS EVOLUTION WE FORESEE THREE PROBLEMS

FIRST, HONG KONG HAS LITTLE EXPERIENCE IN ELECTIONS,

SECOND, WE HAVE NO TRADITION OF SELECTING OUR LEADERS THROUGH PARTY POLITICS, AND

THIRD, WE LACK A GROUP OF EXPERIENCED INDIVIDUALS WITH PROVEN EXPERTISE TO RUN HONG KONG ON A MINISTERIAL BASIS, + MR LEE SAID.

THE WHITE PAPER ON THE FURTHER DEVELOPMENT OF REPRESENTATIVE GOVERNMENT IN HONG KONG+ HAD SET OUT THE FIRST PHASE OF POLITICAL RESTRUCTURING WHICH TOOK ACCOUNT OF THOSE PROBLEMS. THE ARRANGEMENT WOULD HELP OVERCOME THE LACK OF ESTABLISHED POLITICAL PARTIES AND ACHIEVE A COMBINATION OF REPRESENTATIVES FROM THE POPULACE AND FROM THE EXPERT TALENTS FOR THE LEGISLATURE.

THE PEOPLE

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