XN000022-1985-03-31 — Page 10

SUNDAY, MARCH 31, 1985

AS A RESULT, MR JACOBS SAID HE WOULD EXPECT TO SEE HIGHER INVESTMENT BOTH IN PLANT AND MACHINERY, AND IN BUILDINGS AND WORKS.

+BEING SO CLOSE TO CHINA HAS OBVIOUSLY HAD AN EFFECT ON OUR PATTERN OF TRADE, CHINA HAS FOR SOME TIME BEEN THE SECOND MOST IMPORTANT SOURCE OF HONG KONG'S RETAINED IMPORTS, AFTER JAPAN, AND ALSO ITS MOST IMPORTANT SOURCE OF AND MARKÉT FOR RE-EXPORTS,

+ IN ADDITION, IT HAS RECENTLY BECOME HONG KONG'S SECOND MOST IMPORTANT MARKET FOR DOMESTIC EXPORTS, AFTER THE UNITED STATES. THIS GREATLY EXPANDED TRADE HAS HELPED MAKE HONG KONG LESS VULNERABLE TO THE VAGARIES OF TRADE IN THE REST OF THE WORLD, HE SAID,

THE ROLE CHINA APPEARED TO ENVISAGE FOR HONG KONG WENT BEYOND DIRECT TRADE AND REQUIRED HONG KONG TO REMAIN SUCCESSFUL AS A FULLY COMPETITIVE PARTICIPANT IN WORLD TRADE IN GOODS AND SERVICES.

MR JACOBS SAID IT WAS IN THE PROVISION OF SERVICES TO CHINA AND IN ITS CAPACITY AS A LINK BETWEEN CHINA AND THE REST OF THE WORLD THAT HE SAW SOME OF THE MOST SIGNIFICANT DEVELOPMENTS IN THE RELATIONSHIP BETWEEN HONG KONG AND CHINA IN THE NEXT FEW YEARS.

THE EVOLUTION OF OUR ECONOMIC POLICIES WOULD HAVE TO ALLOW FOR THE CHANGES IN THE PATTERN OF HONG KONG'S ECONOMIC ACTIVITIES IMPLICITED IN THE GROWING IMPORTANCE OF CHINA.

+NOW THAT THE SINO-BRITISH AGREEMENT ON THE FUTURE OF HONG KONG HAS BEEN SIGNED, THE SCENE IS SET FOR INCREASED INVESTMENT AND A NORMAL BUSINESS CLIMATE, WITH ALL ITS OPPORTUNITIES, AND ALL ITS CONSTRAINTS AND VAGARIES.

+WE WILL HAVE TO WEATHER THE BAD TIMES AS WELL AS ENJOY THE GOOD, + MR JACOBS SAID.

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