XN000022-1985-01-18 — Page 32

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21.

THE AGREEMENT PROBABLY HAS NO PRECEDENT IN

INTERNATIONAL RELATIONS. IT IS THUS NOT SURPRISING

NO

THAT THE QUESTION SHOULD BE ASKED "WILL IT WORK?". No

ONE CAN GIVE CAST-IRON GUARANTEES ABOUT THE FUTURE.

BUT I BELIEVE THAT IT WILL, BECAUSE IT IS FREELY

ACCEPTED BY BOTH GOVERNMENTS AS A LEGALLY BINDING

INTERNATIONAL AGREEMENT, BECAUSE THE WORD AND PRESTIGE

OF BOTH COUNTRIES ARE FIRMLY COMMITTED TO IT, AND

BECAUSE IT IS IN THEIR JOINT AND INDIVIDUAL POLITICAL

AND ECONOMIC INTEREST THAT IT SHOULD BE A SUCCESS.

SUCCESSFUL IMPLEMENTATION OF THE AGREEMENT WILL ALSO IN

THE WIDER INTERNATIONAL INTEREST. A POTENTIAL SOURCE

OF DISPUTE AND INSTABILITY HAS BEEN REMOVED BY PEACEFUL

NEGOTIATION FROM THE ALL TOO FULL AGENDA OF WORLD

PROBLEMS. THE WORLD NEEDS MORE EXAMPLES OF THAT KIND.

22.

THE

ITS

SO THE PROSPECTS FOR HONG KONG ARE GOOD.

ECONOMY IS HEALTHY, AND ITS EXPORT PERFORMANCE IS

STRONG: THE GROWTH OF OUR GROSS DOMESTIC PRODUCT IN 1984 IS LIKELY TO BE EIGHT PER CENT IN REAL TERMS. INFLATION IS UNDER 7% AND FALLING, THANKS IN PART TO

THE GOVERNMENT THE STABILITY OF THE HONG KONG DOLLAR,

WILL CONTINUE TO FOLLOW A PRUDENT BUDGETARY POLICY. OUR DEFICIT IS LOW: AND WE ARE NOW IN SIGHT OF

RETURNING TO A BALANCED BUDGET. WHILST WE ARE

DETERMINED TO KEEP PUBLIC EXPENDITURE WITHIN OUR

REVENUE RESOURCES, WE ARE INVESTING VIGOROUSLY IN THE

FUTURE.

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