XN000022-1986-07-15 — Page 4

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TUESDAY, JULY 15, 1986

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+EUROPE TOO IS IMPORTANT, BUT BY FAR THE GREATER PART OF OUR TRADE -- OVER 80 PER CENT - IS WITH PACIFIC COUNTRIES, NONE MORE SO THAN THE UNITED STATES -- OUR LARGEST MARKET AND OUR THIRD LARGEST SUPPLIER,+ HE SAID.

SIR EDWARD ALSO GAVE AN ACCOUNT OF THE ARRANGEMENTS AGREED IN THE SINO-BRITISH JOINT DECLARATION AND THE NEGOTIATION BETWEEN THE TWO COUNTRIES ON QUESTIONS CONCERNING HONG KONG'S TRANSITION TO A SPECIAL ADMINISTRATIVE REGION.

AFTER 1997 INVESTMENT WOULD CONTINUE TO BE PROTECTED BY LAW, AND OVERSEAS INVESTORS WOULD CONTINUE TO BE ABLE TO REPATRIATE THE IR PROFITS IF THEY WISHED, HE SAID.

SIR EDWARD REFERRED TO THE AGREEMENT THAT HONG KONG SHOULD BECOME A SEPARATE CONTRACTING PARTY TO THE GENERAL AGREEMENT ON TARIFFS AND TRADE, WHICH SHOULD REMAIN SO AFTER 1997.

HE SAID, +THIS WAS A VITAL MATTER FOR US, WITH OUR HEAVY DEPENDENCE ON TRADE, AND THE OUTCOME WAS A BOOST TO CONFIDENCE.+

+ECONOMICALLY IT IS STRONGLY IN CHINA'S OWN INTEREST THAT HONG KONG SHOULD REMAIN STABLE AND PROSPEROUS AFTER 1997.+

THIS WAS BECAUSE HONG KONG WOULD BECOME MORE VALUABLE TO CHINA AS IT PROCEEDED WITH ITS MODERNISATION PROGRAMME, HE SAID.

HONG KONG WAS RAPIDLY ADOPTING MORE AND MORE TECHNOLOGY AND ADVANCED MANAGEMENT TECHNIQUES, SIR EDWARD WENT ON.

+WE HAVE A HIGHLY EFFICIENT MANUFACTURING SECTOR; A FINANCIAL CENTRE IN REAL TIME TOUCH WITH THE REST OF THE WORLD THROUGH ONE OF THE MOST ADVANCED SATELLITE AND TELECOMMUNICATIONS SYSTEMS AVAILABLE ONE OF THE WORLD'S TECHNICALLY MOST EFFICIENT CONTAINER TERMINALS SOME OF THE WORLD'S MOST MODERN HIGH-TECH BUILDINGS; A FULLY COMPUTERISED AND ACTIVE STOCK EXCHANGE, AND SO ON.+

SUMMING UP, THE GOVERNOR SAID THE JOINT DECLARATION HAD GIVEN HONG KONG A GOOD BASIS ON WHICH TO BUILD, AND THE PEOPLE WERE DETERMINED TO MAKE IT WORK. THE TERRITORY HAD AN EFFICIENT GOVERNMENT, A STABLE SOCIETY, AND A HARD WORKING AND ENTERPRISING POPULATION. THESE QUALITIES HAD BROUGHT HONG KONG A LONG WAY IN A SHORT TIME SO THAT IT HAD BECOME ONE OF THE WORLD'S GREAT TRADING CITIES. +WE INTEND TO DO OUR UTMOST TO ENSURE THAT IT STAYS THAT WAY, HE ADDED.

/THE GOVERNOR