XN000022-1985-01-22 — Page 42

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39.

There is no reason why UK companies should not be more involved in Hong Kong, nor why UK exports should not compete successfully in our markets. Economically I see the same opportunities for UK companies as for those from other countries, and I am glad to say that over the last

year two or three of the UK's leading companies have taken the same

view. As China's modemisation programme progresses, opportunities

abound for those in Hong Kong with the ability to offer advanced

technology and services appropriate to her needs: There is a growing

tendency for intemational companies to use Hong Kong as a spring board

to expand in the region in general and into China in particular. Many

have done so with great success. There is no reason why UK companies should not share in this growth in a more significant way than at

present. I need hardly remind you that there is now a fund of goodwill

towards the United Kingdom in China and the region generally.

Conclusion

•

40.

I trust that what I have said will convince you that Hong Kong

has successfully navigated some choppy waters and now has every prospect

of a successful future. I do not pretend that that future has no

uncertainties. Given its dependence on exports and the openness of its

trading and financial systems, Hong Kong is vulnerable to changes in

the intemational economic climate. The agreement has not removed the

concems of everyone in Hong Kong about the future. There are those who still plan to wait and see. But I will maintain that, if you weigh

those uncertainties against those which affect all other parts of the

world, then Hong Kong has a more assured future than most.

41.

All the factors which have contributed to Hong Kong's economic

prosperity in the past are still present. Our economy is healthy. Our commitment to free enterprise has enabled our manufacturing industry,

our exports and our service industries, including financial services, to achieve enviable rates of growth. Our currency, now linked to the US dollar, is stable, and inflation is falling. The Government is continuing its programme of investment in the future. We shall continue to respond to the needs of our community in order to maintain a firm foundation for social stability. At the same time we shall maintain

prudent financial policies.

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