XN000022-1985-04-10 — Page 4

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WEDNESDAY, APRIL 10, 1985

HONG KONG DESTINED TO BE THE REGIONAL CAPITAL CITY FOR THE FAR EAST ****

THERE IS NO OBVIOUS COMPETITOR TO HONG KONG FOR THE ROLE OF THE REGIONAL CAPITAL CITY IN AND FOR THE FAR EAST, THE CHIEF SECRETARY, SIR PHILIP HADDON-CAVE, SAID THIS (WEDNESDAY) EVENING.

ADDRESSING THE ANNUAL SPRING DINNER OF THE FEDERATION OF HONG KONG INDUSTRIES, SIR PHILIP POINTED OUT THAT THE ECONOMIES OF THIS DEVELOPING RÉGION NEEDED A FOCUS AND A CENTRE WHERE THERE WAS A CONCENTRATION OF THE COMPLEX SERVICES REQUIRED FOR OPERATING IN THE WORLD ECONOMY.

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+ BELIEVE IT IS QUITE POSSIBLE THAT THE CHINESE GOVERNMENT WILL COME TO PERCEIVE THAT THE LONG TERM VALUE OF HONG KONG AS A SPECIAL ADMINISTRATIVE REGION WITH A HIGH DEGREE OF AUTONOMY LIES IN THE ON-GOING DEVELOPMENT OF ITS SOPHISTICATED AND HIGHLY EXPERIENCED COMMERCI AL, MERCANTILE AND FINANCIAL INFRASTRUCTURE BASED ON THE TWIN CONCEPTS OF THE MARKET MECHANISM AND THE FREE ENTERPRISE SYSTEM, COMBINED WITH MINIMUM REGULATORY SYSTEMS AND FREE MOVEMENTS ACROSS THE EXCHANGES,+ HE SAID.

+IF HONG KONG IS ENABLED TO FULFIL WHAT I BELIEVE TO BE ITS ULTIMATE DESTINY TO BE THE REGIONAL CAPITAL CITY OF THE FAR EAST -- THEN THE HONG KONG SAR WILL HAVE ACQUIRED AN ADDITIONAL DIMENSION BEYOND THE DREAMS OF THOSE WHO NEGOTIATED THE SINO-BRITISH AGREEMENT,

-IT GOES WITHOUT SAYING THAT, WHEREAS TO PRESERVE THE PROSPERITY AND STABILITY OF HONG KONG IN ITS PRESENT DIMENSION, THE IMPORTANCE OF THE BASIC POLICIES ELABORATED BY THE CHINESE GOVERNMENT FOR THE HONG KONG SAR IN ANNEX I TO THE JOINT DECLARATION IS SELF-EVIDENT, THE CONTINUING OBSERVANCE OF THESE POLICIES WOULD TAKE ON A SPECIAL SIGNIFICANCE IN THE CONTEXT OF THIS ADDITIONAL DIMENSION.+

THE CHIEF SECRETARY SAID HE DID NOT BELIEVE THAT THE VALUE OF HONG KONG AS A CAPITALIST ENCLAVE INSIDE THE SOCIALIST MOTHERLAND WOULD WITHER AWAY AS THE RESULTS OF CHINA'S MODERNISATION PROGRAMMES BEGAN TO COME ON STREAM,

+ DO NOT BELIEVE THAT HONG KONG WILL CEASE TO BE A VIABLE AND PRODUCTIVE ASSET, HE SAID.

+WHILST THE MANUFACTURING SECTOR REMAINED THE BASE OF THE ECONOMY AND THE SOURCE OF LIVELIHOOD FOR OVER ONE-THIRD OF THE LABOUR FORCE, HONG KONG HAS RAPIDLY EMERGED, SINCE THE MIDDLE OF THE 1970S, AS AN INTERNATIONAL COMMERCIAL, MERCANTILE AND FINANCIAL CENTRE IN ITS OWN RIGHT.

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