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7.

IN THE LAST FEW YEARS HONG KONG'S TRADITIONAL

ROLE AS A TRADING CENTRE HAS ALSO REVIVED STRONGLY, AS

A RESULT OF THE OPENING OF CHINA'S ECONOMY SINCE 1978

AND CHINA'S POLICY OF MODERNISATION. MANY CHINESE

CORPORATIONS AND BANKS ARE ACTIVE IN HONG KONG, CHINA

IS THE LARGEST SOURCE OF OUR IMPORTS, AND HONG KONG'S

SECOND LARGEST MARKET. HOPEFULLY CHINA'S PROGRAMME OF

OIL EXPLORATION IN THE SOUTH CHINA SEAS WILL OFFER A

NEW AND ADDITIONAL OPPORTUNITY FOR THE DEVELOPMENT OF

THIS RELATIONSHIP.

8.

HONG KONG HAS THEREFORE A SUBSTANTIAL ECONOMY

OF ITS OWN, IT HAS ALSO MUCH TO OFFER AS A REGIONAL

CENTRE FOR THE FAST GROWING PACIFIC BASIN. I NEED NOT

TELL THIS AUDIENCE OF THE GROWING IMPORTANCE OF THE

PACIFIC BASIN AS A MARKET FOR THE UNITED

STATES, IN 1982. THE VALUE OF US TRADE WITH THE REGION

SURPASSED THAT WITH WESTERN EUROPE BY US$2 BILLION.

IN 1983, THIS GAP WIDENED TO US$29 BILLION; AND THE

TREND IS LIKELY TO CONTINUE. GIVEN ITS LOCATION AND

THE EXCELLENCE OF ITS COMMUNICATIONS, HONG KONG FORMS A

NATURAL POINT OF CONTACT BETWEEN THE ASIAN-PACIFIC AREA

AND THE REST OF THE WORLD - AND PARTICULARLY THE UNITED

STATES. THIS GEOGRAPHICAL ADVANTAGE HAS LONG BEEN

EXPLOITED BY HONG KONG BUSINESSMEN WHO ARE ACCUSTOMED

TO DEAL, TRADE AND THINK INTERNATIONALLY.

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