XN000022-1987-03-04 — Page 3

WEDNESDAY, MARCH 4, 1987,

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JAPANESE TOLD TO CONTINUE INVESTING IN HONG KONG

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THE DEPUTY DIRECTOR OF INDUSTRY, MR TONY EASON, TODAY (WEDNESDAY) TOLD JAPANESE BUSINESSMEN IN OSAKA THAT HONG KONG OFFERED AN EXCELLENT OFFSHORE LOCATION FOR JAPANESE MANUFACTURERS.

SPEAKING AT AN INDUSTRIAL INVESTMENT PROMOTION SEMINAR JOINTLY ORGANISED BY THE INDUSTRY DEPARTMENT, THE OSAKA CHAMBER OF COMMERCE AND INDUSTRY AND JETRO (JAPAN EXTERNAL TRADE ORGANISATION), HE SAID NOW WAS THE TIME TO INVEST.

MR EASON, IN HIS SPEECH + HONG KONG'S ECONOMY AND THE INDUSTRIAL INVESTMENT ENVIRONMENT+, SAID THAT CIRCUMSTANCES NOW WERE ESPECIALLY FAVOURABLE FOR NEW JAPANESE MANUFACTURING INVESTMENTS.

+WHY ARE WE SEEING, IN 1986 AND 1987, A CONSIDERABLE AMOUNT OF INVESTMENT INTEREST FROM JAPAN?

+THE STRONG YEN AND THE THREAT OF PROTECTIONISM ARE EXERTING PRESSURE ON MANY JAPANESE FIRMS; BUT WHY SHOULD HONG KONG BE CONSIDERED A SUITABLE OFFSHORE LOCATION?+ HE ASKED.

MR EASON NOTED THAT CLEARLY NOT ALL JAPANESE MANUFACTURERS WOULD FIND HONG KONG A SUITABLE OFFSHORE LOCATION SINCE, FOR EXAMPLE, THE TERRITORY LACKED THE EXPANSE OF LAND REQUIRED FOR HEAVY INDUSTRY.

+ BUT FOR MOST KINDS OF LIGHT AND MEDIUM INDUSTRY, HONG KONG COMPARES VERY FAVOURABLY WITH OTHER LOCATIONS IN THE REGION, IN TERMS OF MANPOWER TRAINING AND INDUSTRIAL SUPPORT SERVICES.

+ONE INDICATOR OF THIS IS GIVEN BY THE PROJECTS WHICH MY DEPARTMENT HAS ASSISTED OVER THE PAST FOUR YEARS.

+OUT OF 61 MANUFACTURING PROJECTS WHICH HAVE ALREADY SUCCESSFULLY SET UP IN HONG KONG, OR ARE IN THE PROCESS OF BEING SET UP, NO LESS THAN 32 BROUGHT WITH THEM TECHNOLOGY IN THEIR FIELD WHICH WAS HIGHER THAN THE LEVEL EXISTING IN HONG KONG AT THE TIME THEY SET UP. AND 18 OF THESE ALSO INTRODUCED SIGNIFICANT NEW PRODUCTS TO THE ALREADY WIDE RANGE PRODUCED BY HONG KONG INDUSTRY.+

MR EASON SAID HONG KONG OFFERED AN INVESTMENT CLIMATE SECOND TO NONE IN THE REGION WITH ITS EXCELLENT INFRASTRUCTURE FOR MANUFACTURING, A BUSINESS ENVIRONMENT WHICH MUST BE THE BEST IN THE WORLD AND A HARDWORKING, TRAINABLE AND PRAGMATIC WORKFORCE.

/POINTING