XN000022-1985-01-22 — Page 5

TUESDAY, JANUARY 22, 1985

SIR EDWARD SAID HE DID NOT PRETEND THAT THE FUTURE HAD NO UNCERTAINTIES.

GIVEN ITS DEPENDENCE ON EXPORTS AND THE OPENNESS OF ITS TRADING AND FINANCIAL SYSTEMS, HONG KONG WAS VULNERABLE TO CHANGES IN THE INTERNATIONAL ECONOMIC CLIMATE.

+THE AGREEMENT HAS NOT REMOVED THE CONCERNS 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,+ HE SAID.

ALL THE FACTORS WHICH HAD CONTRIBUTED TO HONG KONG'S ECONOMIC PROSPERITY IN THE PAST WERE 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 U.S. 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, HE SAID.

+

POINTING OUT THAT THE AGREEMENT CONSTITUTED A BINDING COMMITMENT ON THE PART OF BOTH GOVERNMENTS TO FOSTER THE STABILITY AND PROSPERITY OF HONG KONG, SIR EDWARD SAID HE HAD NO DOUBT THAT THEY WOULD FULFIL THAT COMMITMENT.

+NOT ONLY BECAUSE THEY ARE PLEDGED TO MAKE THE AGREEMENT WORK, BUT BECAUSE IT IS SELF-EVIDENTLY IN THEIR INTEREST TO DO SO.+ HE SAID.

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