XN000022-1987-01-17 — Page 5

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SATURDAY, JANUARY 17, 1987

FORECASTING THE CONTINUED DEVELOPMENT OF THE ECONOMIC LINKS BETWEEN THE TERRITORY AND CHINA, MR HSU SAID THAT HONG KONG WOULD CONTINUE TO BE IN A POSITION TO PROVIDE CHINA WITH THE BROAD RANGE OF SERVICES IT WOULD NEED AND WHICH IT WOULD NOT BE ABLE TO SUPPLY AS EFFICIENTLY ITSELF NOR OBTAIN AS CONVENIENTLY OR EFFICIENTLY FROM ELSEWHERE.

MR HSU SA ID THAT WHILE CHINA AND HONG KONG HAD HAD A LONG STANDING RELATIONSHIP AS TRADING PARTNERS, THE RE-EMERGENCE OF HONG KONG AS AN ENTREPOT FOR THE REST OF CHINA WAS A NEW FACTOR IN THE TERRITORY'S ECONOMIC LIFE.

+OUR TRADITIONAL ROLE AS AN ENTREPOT FOR CHINA HAS RE-EMERGED AND THIS DEVELOPMENT REFLECTS THE INESCAPABLE FACT THAT HONG KONG IS THE MOST CONVENIENT AND LARGEST ESTABLISHED GATEWAY OR CONDUIT TO CHINA, HONG KONG ALSO PROVIDES INTERNATIONAL SERVICES, ON CHINA'S DOORSTEP, IN THE FIELDS OF FINANCE, TRADE AND COMMUNICATION ALL OF WHICH ARE OF INCREASING VALUE TO CHINA AS SHE OPENS UP.+

TURNING FROM THE CHINESE DIMENSION OF HONG KONG'S ECONOMY TO THE RELATIONSHIP BETWEEN THE UNITED STATES AND HONG KONG AS TRADING PARTNERS, MR HSU VOICED HONG KONG'S CONCERN OVER THE GROWTH OF PROTECTIONISM IN THE U.S. MARKETS, PARTICULARLY THE RESTRICTIVE MEASURES ON TEXTILES AND GARMENT PRODUCTS.

+WHILE WE FULLY APPRECIATE THAT THE UNITED STATES IS CONCERNED WITH ITS TRADE DEFICIT AND WITH THE FACT THAT NOT ALL ITS TRADING PARTNERS OPEN UP THEIR MARKETS TO AMERICAN GOODS AND SERVICES, THESE DO NOT JUSTIFY TAKING PROTECTIONIST MEASURES AGAINST IMPORTS FROM HONG KONG,+ MR HSU SAID, POINTING OUT THAT COMPETITION IN HONG KONG WAS FREE AND FAIR.

+WE BELIEVE THAT THE UNITED STATES, IN DECIDING ITS TRADE POLICY, SHOULD GIVE RECOGNITION TO HONG KONG'S STANCE ON FREE AND FAIR TRADE. THIS WOULD INDUCE OTHER TRADING PARTNERS OF THE UNITED STATES TO FOLLOW HONG KONG'S EXAMPLE AND OPEN UP THEIR MARKETS,+ HE SAID.

MR HSU CONFIRMED THAT HONG KONG CONTINUED TO PROVIDE MANY OPPORTUNITIES FOR INVESTORS IN THE UNITED STATES AND OTHER PARTS OF THE WORLD.

HE SAID HE HOPED THAT THE UNITED STATES WOULD CONTINUE TO UPHOLD THE PRINCIPLES OF OPEN MARKET AND FREE COMPETITION, PARTICULARLY FOR TRADING PARTNERS LIKE HONG KONG WHICH PRACTISED THEM WHOLE-HEARTEDLY.

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