XN000022-1985-05-02 — Page 4

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THURSDAY, MAY 2, 1985

+HK

A GOING CONCERN WITH A FUTURE+

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THE SINO-BRITISH AGREEMENT ON HONG KONG'S FUTURE HAD LAID THE GROUND WORK FOR THE CONTINUATION OF HONG KONG'S FREE AND DYNAMIC BUSINESS ENVIRONMENT, THE SECRETARY FOR MONETARY AFFAIRS. MR DOUGLAS BLYE, TOLD A MEETING OF THE BOARD OF GOVERNORS OF THE ASIAN DEVELOPMENT BANK IN BANGKOK TODAY (THURSDAY).

IT COULD BE SEEN THAT HONG KONG WAS A GOING CONCERN WITH A FUTURE STRETCHING INTO THE NEXT CENTURY AND BEYOND, HE SAID.

HE ADDED THAT THERE WERE INGREDIENTS IN THE AGREEMENT FOR HONG KONG TO CONTINUE TO CONTRIBUTE TO DEVELOPMENT IN THIS REGION THROUGH THE SUBSTANTIAL TRADE IN BOTH GOODS AND SERVICES IT CARRIED OUT WITH THE BANK'S DEVELOPING MEMBER COUNTRIES.

MR BLYE SAID, HOWEVER, THAT HONG KONG WOULD NOT BENEFIT FULLY FROM THE FAVOURABLE TERMS ENSHRINED IN THE AGREEMENT WHILE INTERNATIONAL TRADE WAS HAMPERED BY RISING PROTECTIONISM.

+UNFORTUNATELY, ALL THAT HAS BEEN SAID IN MANY FORUMS AROUND THE WORLD AGAINST PROTECTIONISM SEEMS TO HAVE LARGELY FALLEN ON DEAF EARS FOR THE POSITION CONTINUES TO WORSEN.

+HONG KONG BELIEVES THAT IT IS IMPORTANT TO MAINTAIN AND ENCOURAGE THE DEVELOPMENT OF A FREE AND OPEN INTERNATIONAL ECONOMIC SYSTEM AND ALL CAN SEE THAT IT PRACTISES WHAT IT PREACHES. WE HOPE THAT OTHERS WILL DO THE SAME,+ HE SAID.

MR BLYE NOTED THAT IN 1984, HONG KONG'S TOTAL TRADE (INCLUDING ENTREPOT TRADE) IN GOODS WITH ALL COUNTRIES IN THE REGION WAS OVER US$30 BILLION, WHICH REPRESENTED AN INCREASE OF 27 PER CENT OVER 1983 AND AN AVERAGE ANNUAL GROWTH RATE OF 18 PER CENT OVER THE PAST DECADE.

IT TRADITIONALLY RAN A BALANCE OF TRADE DEFICIT WITH COUNTRIES IN THE REGION AS A WHOLE AND IN 1984 THIS DEFICIT AMOUNTED TO ALMOST US$10 BILLION, NEARLY FOUR TIMES LARGER THAN WHAT IT WAS A DECADE AGO.

HONG KONG HAD ALSO BEEN PROVIDING ON AN INCREASING SCALE VERY EFFICIENT FINANCIAL, COMMERCIAL, TRANSPORT AND TELECOMMUNICATIONS SERVICES TO COUNTRIES IN THE REGION, PARTICULARLY THE DEVELOPING MEMBER COUNTRIES,

HONG KONG'S EVER STRENGTHENING ECONOMIC RELATIONSHIP WITH THE DEVELOPING MEMBER COUNTRIES SHOULD CONTINUE TO DEVELOP FOR MANY YEARS TO COME, MR BLYE SAID.

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