XN000022-1986-05-26 — Page 2

MONDAY, MAY 26, 1986

GOVERNOR GREAT SCOPE FOR DEVELOPING TRADE WITH JAPAN

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HONG KONG'S ECONOMIC SYSTEM IS WELL GEARED, NOW AND IN THE FUTURE, TO FACE UP TO THE PROBLEMS CONFRONTING THE WORLD'S TRADING ECONOMIES AND TO GROW FURTHER, THE GOVERNOR, SIR EDWARD YOUDE, SAID TODAY (MONDAY).

SPEAKING AT THE NINTH JOINT SESSION OF THE HONG KONG-JAPAN AND JAPAN-HONG KONG BUSINESS CO-OPERATION COMMITTEES IN TOKYO, SIR EDWARD SAID: +AS JAPAN TRIES TO READJUST ITS ECONOMY AND BALANCE ITS EQUATION ON A GLOBAL BASIS, HONG KONG IS WELL PLACED AND IN THE RIGHT STAGE OF DEVELOPMENT TO HELP.

+THERE IS THEREFORE GREAT SCOPE FOR DEVELOPING FURTHER THE ECONOMIC LINKS BETWEEN HONG KONG AND JAPAN TO OUR MUTUAL BENEFIT.+

HE NOTED THAT HONG KONG WAS WIDELY RECOGNISED AS A SUCCESSFUL AND STABLE ECONOMY, BUT TO REMAIN SUCCESSFUL +WE NEED NOT ONLY A STABLE AND PROSPEROUS PRESENT, BUT ALSO CONFIDENCE IN OUR FUTURE.+

SIR EDWARD SAID THE JOINT DECLARATION ON THE FUTURE OF HONG KONG PROVIDED FOR THE CONTINUATION AFTER 1997 OF THOSE ELEMENTS WHICH WERE ESSENTIAL TO HONG KONG'S SUCCESS - A FREE-ENTERPRISE CAPITAL IST ECONOMY, FREE-CONVERTIBILITY OF ITS CURRENCY WITHOUT EXCHANGE CONTROLS, THE MAINTENANCE OF A WELL TRIED LEGAL SYSTEM, GUARANTEES OF PERSONAL RIGHTS AND FREEDOMS, INCLUDING THE FREEDOM TO TRAVEL AND MANY OTHER FEATURES.

HE SAID: +LET ME TELL YOU THAT THE IMPLEMENTATION OF THE JOINT DECLARATION IS PROCEEDING SMOOTHLY AND THAT A NUMBER OF PRACTICAL SOLUTIONS HAVE BEEN FOUND TO PRACTICAL PROBLEMS.

+A PARTICULARLY VALUABLE SOLUTION WAS ANNOUNCED ONLY A FEW WEEKS AGO THAT HONG KONG'S POSITION IN THE GATT WOULD BE MAINTAINED. THIS IS ONE OF THE KEY FEATURES FOR HONG KONG WHICH DEPENDS SO MUCH ON ITS INTERNATIONAL TRADING POSITION. BUT THAT IS ONLY ONE OF THE ACHIEVEMENTS OVER THE PAST YEAR.

+THERE HAVE BEEN SOLUTIONS TO LAND PROBLEMS WHICH ARE SO IMPORTANT FOR PROPERTY PRICES AND SOLUTIONS TO PASSPORT PROBLEMS WHICH ARE SO IMPORTANT TO THE PEOPLE OF HONG KONG WHO VALUE THE ABILITY TO TRAVEL FREELY FOR BUSINESS AND OTHER PURPOSES.

+IN ALL THESE RESPECTS WE HAVE MADE A VERY GOOD START. IT IS ON THE BASIS OF THAT SATISFACTORY POSITION THAT PLAN TO ADDRESS YOU TODAY.+

/DESCRIBING