XN000022-1985-01-22 — Page 31

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4.

In the wider sense, the agreement is of major intemational significance. It provides an encouraging example of how a complex intemational issue, which raised important and deeply felt points of principle for both sides, can be tackled and successfully resolved. In a world where problems between nations often prove so intractable, and international disputes lead to immense problems and suffering, not only for the nations involved, but in many cases their neighbours too, it is an example of what can be achieved by negotiation when there is the will to work with determination and patience in search of the right solution. This is one reason why it is in the wider interest of the intemational community that the agreement should be a success, and that Hong Kong should prosper. We in Hong Kong are mich encouraged that the govemments of the United States; of the countries of the European Economic Community, of Japan, and of our other major trading partners, have recognised this, and have stated their support for the

agreement.

5.

Against that background, it is the aim of this lecture to set out, as I see them, the future prospects for Hong Kong. Before I come to that, however, I will dwell a little on the recent history of Hong Kong, for an understanding of the political, social and economic background is essential to a full appreciation of the significance of the agreement and our prospects for the future.

Development of Present Day Hong Kong

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When the Portuguese first settled in Macau, they regarded Hong Kong as a barren island whose only redeeming feature was a good supply of clear water which supplied small fishing villages and, much later, European merchant ships. What the Portuguese missed, and the British saw, was the superb harbour at the entrance to the Pearl River and Canton. For the past 150 years, that harbour has been Hong Kong's pre-eminent physical asset, around which much of its history has been written. It has made Hong Kong one of the great ports of the world,

and its facilities continue to grow.

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