XN000022-1987-10-23 — Page 2

FRIDAY, OCTOBER 23, 1987

GOVERNOR EXPLAINS IMPORTANCE OF HK TO CHINA

HONG KONG'S IMPORTANCE TO CHINA IS NOW GREATER THAN EVER, GIVEN THE ENORMOUS EFFORTS THAT CHINA IS MAKING TO REALISE ITS VAST ECONOMIC POTENTIAL, THE GOVERNOR, SIR DAVID WILSON, SAID IN NRW YORK ON THURSDAY (U.S. TIME).

FOR EXAMPLE, HE SAID HONG KONG RANKED AS CHINA'S LARGEST SINGLE MARKET, AND WAS CHINA'S LARGEST SOURCE BY FAR OF EXTERNAL SUPPLYING AT LEAST 60 PER CENT OF THE TOTAL ACCORDING

INVESTMENT TO THE LATEST CHINESE FIGURES.

SIR DAVID MADE THESE POINTS IN AN ADDRESS TO THE FOREIGN POLICY ASSOCIATION, IN WHICH HE DESCRIBED HOW CHINA WOULD BENEFIT FROM THE MAINTENANCE OF PROSPERITY AND STABILITY IN HONG KONG.

TO SUGGEST THAT CHINA WOULD DELIBERATELY PUT THE MANIFOLD BENEFITS AT RISK MADE NO SENSE, SIR DAVID SAID, REFERRING TO "GLOOMY VIEWS" OF THE FUTURE SOMETIMES EXPRESSED IN THE MEDIA.

AT THE OUTSET OF HIS SPEECH ENTITLED "HONG KONG'S FUTURE AND WHY IT MATTERS", THE GOVERNOR SAID THE QUESTION OF HONG KONG'S FUTURE HAD FAR WIDER IMPLICATIONS BEYOND THE TERRITORY ITSELF.

BESIDES CHINA'S KCONOMIC MODERNISATION AND OPENING ΤΟ THE WEST, IT ALSO AFFECTED THE INTERESTS OF ALL THOSE COUNTRIES AND TERRITORIES IN THE ASIA-PACIFIC REGION FOR WHICH HONG KONG WAS A CENTRE OF TRADE, FINANCE, TRANSPORTATION AND COMMUNICATIONS.

"IT AFFECTS THE PROSPERITY, AND TO THAT EXTENT ALSO THE STABILITY, OF A DYNAMIC ARBA OF THE WORLD THAT 19 OF GREAT SIGNIFICANCE FOR THE UNITED STATES,"

" HE EXPLAINED.

"I WOULD ARGUB THAT IT SHOULD THEREFORE BK SEEN AS AN IMPORTANT AMERICAN FOREIGN POLICY INTEREST."

SIR DAVID OUTLINED THE MAJOR POINTS OF THE JOINT DECLARATION WHICH CHINA AND BRITAIN HAD SIGNED IN 1984 AFTER TWO YEARS OF NEGOTIATIONS, AND UNDER WHICH SOVEREIGNTY OVER HONG KONG WILL PASS TO CHINA FROM JULY 1997.

HE POINTED OUT, THAT IT WAS A LEGALLY BINDING INTERNATIONAL AGREEMENT REGISTERED BY THE BRITISH AND CHINESE GOVERNMENTS AT THE UNITED NATIONS.

SPECIAL

SPECIFIC ASSURANCES WERB GIVEN THAT AS A ADMINISTRATIVE REGION OF CHINA, HONG KONG WOULD CARRY ON ESSENTIALLY AS IT DID TODAY.

AFTER

"THE JOINT DECLARATION CONTAINS MANY MORE PROVISIONS OF THIS BORT, ALL BOILING DOWN TO ONE ESSENTIAL POINT THAT HONG KONG 1997 WILL CONTINUE TO OPERATE AS AN INTERNATIONAL, CAPITALIST SEPARATE FROM THE SOCIALIST SYSTEM OF THE CHINESE MAINLAND, HE SAID.

CITY,

HONG KONG