XN000022-1985-11-19 — Page 7

TUESDAY, NOVEMBER 19, 1985

+MY TALKS WITH AMBASSADOR YEUTTER REFLECTED THE REAGAN ADMINISTRATION'S CONTINUED OPPOSITION TO PROTECTIONIST LEGISLATION AND THE STRONG LIKELIHOOD OF A PRESIDENTIAL VETO,+ MR DORWARD SAID.

THE DISCUSSIONS ALSO COVERED REPORTED CONGRESSIONAL PROPOSALS FOR CHANGES IN HONG KONG'S STATUS WITHIN THE GENERAL ISED SYSTEM OF PREFERENCES (GSP), WHICH GIVES CERTAIN TRADERS WITH THE UNITED STATES FAVOURED TARIFF STATUS FOR THE IR EXPORTS.

MR DORWARD SAID THAT HE HAD BEEN ASSURED THAT THE ADMINISTRATION WOULD BE OPPOSED TO ANY ARBITRARY CHANGES IN THE GSP.

+AMBASSADOR YEUTTER AFFIRMED THAT ANY CHANGES WOULD HAVE TO SE PRECEDED BY AN OBJECTIVE STUDY OF THE IR CONSEQUENCES, A PROCESS IN WHICH HONG KONG WOULD BE INVITED TO PARTICIPATE,+MR DORWARD SAID.

'EDUCATION THE KEY TO MANAGING CHANGE'

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CHANGES WHICH LEAD HONG KONG FROM A BRITISH DEPENDENT TERRITORY INTO A SPECIAL ADMINISTRATIVE REGION OF THE PEOPLE'S REPUBLIC OF CHINA IN 12 YEARS' TIME CAN BE MANAGED AND EDUCATION IS THE KEY TO BETTER MANAGEMENT. THE DIRECTOR OF EDUCATION, MR MICHAEL LEUNG, SAID TODAY (TUESDAY).

SPEAKING AT THE SPEECH DAY OF ST. PAUL'S CONVENT SCHOOL MR LEUNG SAID THE SINO-BRITISH JOINT DECLARATION PROVIDED A SOUND FRAMEWORK FOR HONG KONG'S TRANSITION, AND BOTH THE BRITISH AND THE CHINESE GOVERNMENTS HAD PLEDGED TO MAKE THIS TRANSITION A SMOOTH ONE.

THE GOVERNMENT HAD MEDIUM AND LONG-TERM PLANS ON ITS SOCIAL, ECONOMIC AND POLITICAL DEVELOPMENTS AND THERE WAS NO REASON WHY CHANGES COULD NOT BE PROPERLY MANAGED GIVEN ALL THESE GUARANTEES AND PLANS, AND THE WILL POWER TO DO SO, HE SAID.

+CHANGES IN HONG KONG OVER THE PAST CENTURY HAVE BEEN DRAMATIC INDEED ITS TRANSFORMATION HAS BEEN SO COMPLETE AS TO MAKE IT UNRECOGNISABLE FROM A BARREN ISLAND TO A MODERN COSMOPOLITAN CITY AND ONE OF THE LEADING FINANCIAL AND ECONOMIC CENTRES OF THE WORLD,+ MR LEUNG SAID.

+SURELY WE IN HONG KONG HAVE BEEN QUITE ACCUSTOMED TO CHANGE, AND CHANGE IS A FACT OF LIFE, HE ADDED.

HOWEVER, CHANGE PROVIDED THE CHALLENGE RATHER THAN THE RESTRAINT FOR THOSE WHO LOOKED AT THE BRIGHT SIDE OF THINGS.

/+WB SHOULD