XN000022-1985-05-08 — Page 4

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MAY 8, 1985

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+SHANGHAI HAS ALSO ALWAYS BEEN A CITY WITH A STRONG INTEREST IN EXTERNAL TRADE. IT IS NOW, WE ARE TOLD, RESPONSIBLE FOR A QUARTER OF ALL CHINA'S FOREIGN TRADE AND THAT MEANS A QUARTER OF A TRADE WHICH HAS BEEN GROWING RAPIDLY AS A CONSEQUENCE OF CHINA'S MODERNISATION PROGRAMME AND OPEN-DOOR POLICIES. IT IS A TRADE IN WHICH I AM GLAD TO SAY THAT HONG KONG IS ALREADY PLAYING ITS PART. OUR TRADE WITH YOU AND OTHER PARTS OF CHINA HAS INDEED GROWN TO A POINT WHERE, IN TERMS OF VALUE OF TOTAL TRADE, IT RIVALS OUR TRADE WITH THE UNITED STATES, OUR TRADITIONAL LARGEST TRADING PARTNER.

+THE PROSPECTS FOR YOUR GROWTH AND FOR FUTURE TRADE ARE NOW EVEN BETTER. WE WELCOME YOUR ECONOMIC DEVELOPMENT BECAUSE WE HAVE LEARNED BY EXPERIENCE THAT PROGRESS AND DEVELOPMENT ACHIEVED BY OUR TRADING PARTNERS MAY MEAN COMPETITION: BUT IT ALSO MEANS GREATLY INCREASED OPPORTUNITIES FOR COMMERCIAL, FINANCIAL AND OTHER RELATIONSHIPS WHICH CAN ONLY BE TO THE BENEFIT OF BOTH.

+IN THIS MODERN WORLD NO ECONOMY CAN BE SELF-SUFFICIENT. MODERN INDUSTRIAL, FINANCIAL AND TRADING RELATIONSHIPS ARE TOO COMPLEX FOR THAT. EACH CENTRE OF ECONOMIC ACTIVITY HAS THINGS WHICH IT CAN DO MORE EFFICIENTLY. AND ENJOYS ADVANTAGES IN SERVICES AND FACILITIES WHICH IT CAN OFFER TO ALL THOSE WISHING TO COME AND USE THEM. IT IS THE RECOGNITION OF THAT FACT WHICH HAS MADE POSSIBLE THE PHENOMENAL DEVELOPMENT OF THE WORLD ECONOMY AND WORLD TRADE OVER THE LAST FEW DECADES. PROVIDING A DUE BALANCE IS MAINTAINED, BOTH EXPORTS AND IMPORTS OF GOODS AND SERVICES ARE ESSENTIAL TO ECONOMIC GROWTH.

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+IT IS ON THE BASIS OF THAT PHILOSOPHY THAT WE COME TO SHANGHAI TODAY. WE COME TO SHOW YOU WHAT HONG KONG CAN PRODUCE AND TO TELL YOU OF THE SERVICES THAT WE CAN OFFER. SINCE THE POST-WAR YEARS HONG KONG HAS GROWN INTO ONE OF THE FOREMOST LIGHT MANUFACTURING CENTRES OF THE WORLD USING GOODS WHICH BECAUSE OF THEIR QUALITY, THEIR ABILITY TO MEET EXACTING STANDARDS AND SPECIFICATIONS, AND THE RELIABILITY OF THEIR SUPPLY, FIND A READY MARKET IN EVEN THE MOST DEVELOPED COUNTRIES. AS THE PATTERN OF WORLD DEMAND HAS CHANGED SO HAVE MANY NEW INDUSTRIES EMERGED IN HONG KONG. WE WERE ALWAYS WELL KNOWN FOR TEXTILES AND WEARING APPAREL. NOW WE COMPETE WITH THE DEVELOPED COUNTRIES IN PRODUCING PLASTICS, ELECTRONIC GOODS, WATCHES, TOYS, PRECISION AND OPTICAL INSTRUMENTS, AND MANY OTHER PRODUCTS.

+BUT IT IS NOT ONLY ON ITS PROGRESS AS A MANUFACTURING CENTRE THAT HONG KONG HAS BUILT ITS ECONOMIC SUCCESS IN RECENT YEARS. ITS FINE DEEP WATER HARBOUR AND ITS GEOGRAPHICAL POSITION HAS MADE IT A NATURAL COMMUNICATIONS AND TRANSPORTATION CENTRE. TO THESE NATURAL ADVANTAGES HAVE BEEN ADDED THE MOST MODERN MARITIME AND AIR TRANSPORT FACILITIES. IN CONSEQUENCE HONG KONG IS NOW A NATURAL POINT OF CONTACT BETWEEN THE FAST GROWING ASIAN PACIFIC REGION AND THE REST OF THE WORLD.

/+THIS IN