XN000022-1986-07-15 — Page 5

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TUESDAY, JULY 15, 1986

THE GOVERNOR SPOKE AT A LUNCHEON HOSTED BY THE WORLD AFFAIRS COUNCIL OF NORTHERN CALIFORNIA IN CO-OPERATION WITH THE HONG KONG BAY AREA ASSOCIATION.

NOTE TO EDITORS:

FULL TEXT OF THE GOVERNOR'S SPEECH -- ENTITLED HONG KONG AND THE U.S. - TRADE PARTNERS IN THE PACIFIC WILL BE MADE AVAILABLE LATER.

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SIR EDWARD REITERATES TRADE CONCERN

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THE GOVERNOR, SIR EDWARD YOUDE REITERATED HIS CONCERN OVER TRADE PROTECTIONIST SENTIMENT IN THE UNITED STATES WHEN HE ANSWERED → QUESTIONS FOLLOWING HIS ADDRESS TO THE WORLD AFFAIRS COUNCIL OF

NORTHERN CALIFORNIA IN SAN FRANCISCO ON MONDAY TUESDAY, HK TIME).

+WE UNDERSTAND TRADE PROBLEMS OF THE WORLD, HE TOLD A QUESTIONER. +SO WE ARE REALLY PREACHING THE DOCTRINE OF SAYING THAT WE UNDERSTAND WHY PROTECTIONIST SENTIMENT GROWS. BUT THE ANSWER TO IT IS NOT TO APPLY PROTECTIONIST MEASURES TO THOSE WHO ARE ALREADY FREE TRADERS IN GOODS AND SERVICES.+

HE EMPHASISED AGAIN THAT HONG KONG WAS NOT ONLY A GREAT EXPORTER TO THE UNITED STATES BUT ALSO A GREAT IMPORTER FROM IT.

SIR EDWARD WAS ALSO QUESTIONED REGARDING THE FUTURE OF HONG KONG FOLLOWING THE SIGNING OF THE SINO-BRITISH JOINT DECLARATION.

ASKED WHETHER THERE WAS A POSSIBILITY OF CHINA SCALING DOWN? HONG KONG AS A FINANCIAL AND BANKING CENTRE, THE GOVERNOR SAID HE DID NOT SEE WHAT INTEREST CHINA WOULD HAVE ÎN DOING THAT.

+ INDEED THINK ONE OF THE MOST IMPRESSIVE THINGS ABOUT THE WHOLE NEGOTIATIONS IN WHICH I WAS INVOLVED WAS IN THE CHINESE CONCERN WITH ALL THINGS WHICH WOULD MAINTAIN HONG KONG'S STABILITY AND PROSPERITY AND OUR FINANCIAL CENTRE.

+ AND HONG KONG AS A BANKING CENTRE DOES MAKE A VERY GOOD CONTRIBUTION TO HONG KONG'S PROSPERITY, THE GOVERNOR SAID.

HE ALSO POINTED OUT THAT THE SINO-BRITISH AGREEMENT PROVIDED THAT THE HONG KONG DOLLAR SHOULD CONTINUE AND BE FREELY CONVERTIBLE AFTER 1997.

/ASKED ABOUT