XN000022-1987-05-21 — Page 4

THURSDAY, MAY 21, 1987

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MR MACLEOD FURTHER NOTED A U.S. COMMERCE DEPARTMENT ESTIMATE WHICH STATES THAT EVEN IF ALL UNFAIR TRADE PRACTICES WERE REMOVED, THIS WOULD ACCOUNT FOR LESS THAN 20 PER CENT OF THE US$170 BILLION U.S. TRADE DEFICIT.

+1 AM SURE THAT THE MORE WE ALL OPEN OUR MARKETS AS FAR AS WE ARE ABLE, THE BETTER FOR WORLD TRADE, AND FOR THE PROSPECTS OF AVOIDING EXTREMIST TRADE LEGISLATION, HE ADDED.

COMMENTING ON PROSPECTS FOR HONG KONG'S CONTINUED ECONOMIC EXPANSION, MR MACLEOD SAID IN ADDITION TO THE BROADER QUESTION OF WHETHER ATTEMPTS TO REINFORCE THE DISCIPLINES OF INTERNATIONAL TRADE WILL SUCCEED THE KEY FACTORS HAVE TO BE THE TERRITORY'S TWO LARGEST TRADING PARTNERS, CHINA AND THE U.S.

*WE FACE IN HONG KONG A SYSTEM IN TRANSITION BUT THE POINT TO BEAR IN MIND IS THAT THE TRANSITION OFFERS OPPORTUNITIES AS WELL AS PROBLEMS,+ SAID MR MACLEOD, NOTING THAT FROM PAST RECORD, HONG KONG SHALL MAKE THE MOST OF THE OPPORTUNITIES AND WILL TACKLE THE PROBLEMS WITH DETERMINATION.

MR MACLEOD DISCLOSED THAT THE BILATERAL TRADE BETWEEN CHINA AND HONG KONG INCREASED TEN TIMES SINCE CHINA'S +OPEN-DOOR+ POLICY BETWEEN 1978 AND 1985.

ON THE SECOND KEY FACTOR, MR MACLEOD SAID THAT THE TRADING RELATIONSHIP WITH THE U.S., HONG KONG'S LARGEST MARKET, REMAINS ALSO OF FUNDAMENTAL IMPORTANCE.

+WE GREATLY VALUE OUR ROLE AS A MAJOR BUSINESS PARTNER FOR THE USA IN ASIA, AND WE BELIEVE THE VALUE IS TWO-WAY,+ ADDED MR MACLEOD.

IN 1986, $12.5 BILLION IN TWO-WAY TRADE WAS RECORDED.

MR MACLEOD POINTED OUT THAT HONG KONG IS ABOUT 13TH IN THE WORLD IN TERMS OF ITS TOTAL TRADE, AND THIS IS ON AN UPWARD TREND. HE FURTHER ADDED THAT HONG KONG'S IMPORTS ARE AS LARGE AS ITS EXPORTS.

TRADE WITH THE ASIAN-PACIFIC REGION IS VITAL TO HONG KONG, SAID MR MACLEOD, QUOTING THE EXAMPLE THAT IN 1986 AROUND 75 PER CENT OF HONG KONG'S TOTAL IMPORTS OF US$35 BILLION WERE FROM THIS REGION.

HIGH TECHNOLOGY AND PACIFIC CO-OPERATION BOTH FEATURE VERY LARGELY IN HONG KONG'S PAST PROGRESS AND FUTURE PROSPECTS, SAID MR MACLEOD.

+THE RELATIVE IMPORTANCE OF ELECTRONICS HAS INCREASED SO FAST IN RECENT YEARS THAT IT NOW CONSTITUTES AROUND ONE FIFTH OF OUR DOMESTIC EXPORTS, SECOND ONLY TO GARMENTS, HE ADDED.

HONG KONG'S GDP HAS BEEN GROWING SINCE 1980 AT ABOUT SIX PER CENT IN REAL TERMS AND IT IS FORECAST TO GROW IN 1987 BY A FURTHER SIX PER CENT.

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