XN000022-1985-01-26 — Page 2

SATURDAY, JANUARY 26, 1985

ENCOURAGING INTEREST IN HONG KONG

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SENIOR BUSINESSMEN BOTH IN NEW YORK AND IN LONDON HAVE A VERY ENCOURAGING INTEREST IN HONG KONG, THE GOVERNOR, SIR EDWARD YOUDE, SAID TODAY (SATURDAY).

HE SAID THIS WHEN HE RETURNED FROM LONDON THIS MORNING. HE WAS MET ON ARRIVAL BY THE CHIEF SECRETARY, SIR PHILIP HADDON-CAVE- SENIOR UNOFFICIAL MEMBER OF THE EXECUTIVE COUNCIL, SIR S.Y. CHUNG- AND SENIOR UNOFFICIAL MEMBER OF THE LEGISLATIVE COUNCIL, SIR ROGER LOBO.

FOLLOWING IS THE TEXT OF SIR EDWARD'S REMARKS TO REPORTERS AT THE AIRPORT:

+GOOD MORNING. LADIES AND GENTLEMEN. WELL, THE MAIN PURPOSE OF THIS TRIP WAS TO EXPLAIN TO INFLUENTIAL AUDIENCES IN THE UNITED STATES AND IN LONDON THE SIGNIFICANCE OF THE AGREEMENT AND TO ENCOURAGE BUSINESSMEN THERE TO THINK OF HONG KONG AS A GOOD PLACE IN WHICH TO INVEST AND WITH WHICH TO TRADE. THE OPENING OF THE HONG KONG BANK'S HEADQUARTERS OF THE AMERICAS AND MY VISIT TO THE STOCK EXCHANGE GAVE ME SOME EXTRA OPPORTUNITIES TO DO THAT, AND I FOUND A VERY ENCOURAGING INTEREST ON THE PART OF SENIOR BUSINESSMEN BOTH IN NEW YORK AND IN LONDON IN HONG KONG.

+WHEN I WAS THERE IN NEW YORK, I WENT UP TO WASHINGTON, AND THERE I SAW THE VICE-PRESIDENT AND THE SECRETARY OF STATE SHULTZ AND WAS ABLE TO EXPLAIN THE SIGNIFICANCE OF THE AGREEMENT TO THEM ALSO, ALTHOUGH THEY ALREADY HAD A VERY GOOD UNDERSTANDING OF IT. AND I TALKED ABOUT TRADE MATTERS WITH THE SECRETARY FOR COMMERCE, SECRETARY BALDRIDGE AND THE SPECIAL TRADE REPRESENTATIVE, AMBASSADOR BROCK, WITH THEM, OF COURSE, I RAISED THE QUESTION OF THE RULES OF ORIGIN AND WAS ABLE TO EXPLAIN HONG KONG'S CONCERN ON THAT ISSUE. WHILE I WAS THERE, IT WAS AGREED THAT THE CONSULTATIONS WOULD BEGIN ON FEBRUARY 4 WHEN OUR NEGOTIATORS WILL HAVE ANOTHER OPPORTUNITY TO PUT OUR CASE.

+FINALLY I WENT ON TO LONDON WHERE THE BIG EVENT WAS, AS YOU KNOW, THE SECOND READING OF THE HONG KONG BILL, AND THERE SIR S.Y. WAS WITH ME. AND WITH SIR S.Y., MISS MARIA TAM AND PETER WONG, WE WERE ABLE TO SEE MINISTERS AND DISCUSSED VARIOUS ASPECTS OF THE BILL WITH THEM. AND THEN, I HAD FURTHER MEETINGS WITH THEM TO DISCUSS THE FUTURE PROGRAMME OF WORK AND OTHER MATTERS RELATING TO HONG KONG.

+50 ALL IN ALL, IT WAS QUITE A BUSY TRIP. I AM VERY GLAD TO BE BACK IN HONG KONG.+

IN REPLY TO A QUESTION ON THE TALKS WITH THE FOREIGN OFFICE ABOUT THE JOINT LIAISON GROUP, HE SAID: WE HAD FURTHER TALK ON THE COMPOSITION OF THE GROUP AND ON THE WAY IN WHICH IT MIGHT OPERATE AND THE KIND OF THINGS WITH WHICH IT MIGHT DEAL. THERE IS STILL SOME FURTHER DISCUSSION AND CONSULTATION TO BE DONE ON THAT. AND THE COMPOSITION AND OTHER DETAILS WOULD BE ANNOUNCED IN DUE COURSE.+

*THE POINT IS THE JOINT LIAISON GROUP COMES INTO BEING AFTER THE AGREEMENT IS RATIFIED AND COMES INTO FORCE, AND THAT A FEW MORE STAGES FOR THE HONG KONG BILL TO GO THROUGH IN PARLIAMENT. WILL TAKE A LITTLE TIME BEFORE THAT HAPPENS, HE ADDED.

THAT