XN000022-1986-05-13 — Page 7

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TUESDAY, MAY 13, 1986

IN THE FIELD OF PERSONAL TRAVEL, HE SAID ABOUT 11 MILLION BUSINESS AND LEISURE TRIPS WERE MADE BY HONG KONG RESIDENTS TO

THE MAINLAND IN 1985, AN INCREASE OF 40 PER CENT OVER THE PREVIOUS YEAR.

THIS GENERAL DEVELOPMENT IN TRADE AND COMMERCE BETWEEN HONG KONG AND CHINA HAD GENERATED GROWING DEMAND FOR SUCH SERVICES AS SHIPPING, TRANSPORTATION, INSURANCE, FREIGHT HANDLING, BANKING, ADVERTISING, LEGAL AND ACCOUNTANCY SERVICES AND SO ON.

+THIS DEMAND AND ALSO CHINA'S EFFORTS TO ENCOURAGE FOREIGN INVESTMENT HAVE ALL CONTRIBUTED TO BUILDING UP HONG KONG'S STRENGTH AS A FINANCIAL CENTRE OF INTERNATIONAL IMPORTANCE, HE SAID.

ON THE INVESTMENT RELATIONSHIP, MR JACOBS SAID HONG KONG REPRESENTED AN IMPORTANCE SOURCE OF INVESTMENT IN CHINA, ESPECIALLY INVESTMENT IN THE SHENZHEN SPECIAL ECONOMIC ZONE, WHERE ABOUT 80 OR 90 PER CENT OF THE TOTAL INVESTMENTS WAS BELIEVED TO HAVE BEEN CONTRIBUTED BY INVESTORS FROM HONG KONG.

ON THE OTHER HAND, SINCE THE LATE 1970'S CHINA HAD BEEN EXPANDING ITS OWN DIRECT INVESTMENT IN HONG KONG, HE SAID.

HE POINTED OUT THAT CHINESE TRADING COMPANIES HAD DEVELOPED FROM THEIR MORE TRADITIONAL ROLES INTO AREAS SUCH AS PROPERTY INVESTMENT AND MANUFACTURING.

APART FROM MAKING PROFITS, HE SAID THROUGH THEIR INVESTMENTS, CHINESE COMPANIES AND THEIR STAFF COULD ACQUIRE INTERNATIONAL TRADING AND MODERN MANAGEMENT SKILLS, AS WELL AS PROMOTE TECHNOLOGY TRANSFER.

IN CONCLUSION, MR JACOBS STRESSED THAT FINANCIAL SERVICES WERE IMPORTANT TO HONG KONG.

*WITHOUT THIS SECTOR, AS WELL AS OUR STRONG MANUFACTURING BASE, IT MIGHT BE INCREASINGLY DIFFICULT TO PRESERVE THE FULL FLAVOUR AND CHARACTER OF HONG KONG IN THE YEARS AHEAD, HE SAID.

AS TO OTHER FINANCIAL CENTRES, HE SAID THE GROWTH OF ANY NE.. MAJOR INTERNATIONAL CENTRE HAD TENDED TO COMPLEMENT THOSE EXISTING RATHER THAN TO DETRACT FROM THEM.

HE ADDED THAT HONG KONG HAD ALWAYS THRIVED ON COMPETITION, AND THERE WAS NO REASON WHY IT SHOULD NOT ADAPT TO NEW DEVELOPMENTS IN FUTURE JUST AS IT HAD IN THE PAST.

IN SO DOING, HONG KONG WOULD SAFEGUARD THE WAY OF LIFE OF ITS PEOPLE AND ENSURE THAT ITS ECONOMIC RELATIONSHIP WITH THE MAINLAND WOULD CONTINUE TO FLOURISH, HE SAID.

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