XN000022-1987-12-13 — Page 16

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SUNDAY, DECEMBER 13, 1987

FOR HONG KONG PEOPLE, THEREFORE, THE JOINT DECLARATION PROVIDES THAT THE ESSENTIALS OF THEIR LIFESTYLE WILL NOT CHANGE. FOR INVESTORS, LOCAL AND OVERSEAS, IT GIVES REASSURANCE THAT THEIR RIGHTS WILL BE PROTECTED AND THAT PROFITS CAN BE FREELY CONVERTED OB REPATRIATED.

SO MUCH FOR WHAT THE JOINT DECLARATION SAYS. BUT WHAT MANY PEOPLE WORRY ABOUT 18 WHETHER IT WILL WORK IN PRACTICE. THERE ARE GOOD GROUNDS FOR BELIEVING THAT IT WILL. WE HAVE A SUCCESSFUL RECORD OF IMPLEMENTATION EFFORTS SO FAR. BRITAIN AND CHINA HAVE HAD MORE OR LESS CONTINUOUS DISCUSSIONS ON IMPLEMENTATION SINCE THE RATIFICATION OF THE JOINT DECLARATION IN MID-1985. THE MAIN FORUM FOR THESE DISCUSSIONS HAS BEEN THE SINO-BRITISH JOINT LIAISON GROUP, CONSISTING OF FIVE OFFICIALS ON EACH SIDE (WITH TWO HONG KONG OFFICIALS AS PART OF THE BRITISH TEAM), CALLING ON EXPERT ADVICE WHEN NECESSARY. THE GROUP HAS ACHIEVED A GREAT DEAL SINCE IT STARTED ITS WORK TWO YEARS ACO. IT HAS AGREED THAT HONG KONG SHOULD BECOME A SEPARATK CONTRACTING PARTY TO THE GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT) AND THAT IT SHOULD REMAIN SO AFTER 1997. HONG KONG DULY BECAME A PARTY IN ITS OWN RIGHT IN APRIL 1986, THEREBY ENDING UNCERTAINTY OVER HONG KONG'S FUTURE TRADING POSITION WHEN THE BRITISH UMBRELLA IS REMOVED (CHINA IS NOT CURRENTLY A MEMBER OF THE GATT). IT HAS AGREED ON TRAVEL AND IDENTITY DOCUMENTS FOR HONG KONG PEOPLE TO USE UP TO AND AFTER 1997. IT HAS PAVED THE WAY FOR HONG KONG ΤΟ CONCLUDE ITS OWN AIR SERVICE AGREEMENTS - THE FIRST, WITH THE NETHERLANDS, ALREADY BEEN SIGNED - AND TO SET UP ITS OWN SHIPPING REGISTER. IN AREAS OF VITAL CONCERN TO HONG KONG

TRADE, TRAVEL, AND COMMUNICATIONS - THE JOINT DECLARATION IS ALREADY BRING IMPLEMENTED. IN OTHER AREAS TOO, NOTABLY IN THE DISCUSSIONS OVER HOW TO MAINTAIN HONG KONG'S STATUS IN THE MYRIAD INTERNATIONAL AGREEMENTS AND ORGANISATIONS IN WHICH IT PARTICIPATES, THE JOINT LIAISON GROUP 13 MAKING GOOD PROGRESS.

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HAS

THUS

BOTH THE BRITISH AND CHINESE GOVERNMENTS ARE PUBLICLY AND FIRMLY COMMITTED TO MAKING A SUCCESS OF THE JOINT DECLARATION LEGALLY BINDING INTERNATIONAL AGREEMENT, REGISTERED WITH THE UNITED NATIONS, TO WHICH BOTH HAVE DEVOTED AND CONTINUE TO DEVOTE A GREAT DEAL OF TIME AND EFFORT, RIGHT UP TO THE HIGHEST LEVELS OF GOVERNMENT.

IT IS WORTH EXAMINING THE VESTED INTERESTS RIDING ON THE SUCCESS OF HONG KONG. THE INTERESTS OF THE PEOPLE OF HONG KONG IN THIS ARE OBVIOUS. PERHAPS LESS OBVIOUS TO SOME OVERSEAS OBSERVERS IS THE STRONG CHINESE INTEREST THAT HONG KONG SHOULD CONTINUE TO PROSPER AS IT DOES NOW. HONG KONG IS CHINA'S LARGEST MARKET AND ITS SECOND LARGEST TRADING PARTNER. IT IS BY FAR CHINA'S LARGEST SOURCE OF DIRECT EXTERNAL INVESTMENT AND JOINT VENTURE INVESTMENT (IN THE SKVEN YEAR 1979-1985, 60 PER CENT OF CHINA'S EXTERNAL INVESTMENT CAME FROM HONG KONG). IT IS A VITAL OUTLET FOR CHINESE EXPORTS, AND AN IMPORTANT SERVICE CENTRE FOR CHINA AS WELL AS OTHER COUNTRIES IN THE REGION. THE VAST NUMBER OF HONG KONG PEOPLE TRAVELLING TO CHINA (OVER 22 MILLION BORDER CROSSINGS IN 1986, COMPARED WITH AROUND HALF A MILLION IN THE MID-1970'S), AND REMITTANCES SENT TO RELATIVES IN CHINA BY HONG KONG RESIDENTS ARE ALSO VALUABLE SOURCES OF INCOME FOR CHINA.

/CHINESE INVESTMENTS