XN000022-1987-12-13 — Page 18

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SUNDAY, DECEMBER 13, 1987

POR WESTERN BUSINESSMEN, HONG KONG IS THE NATURAL PLACE ΤΟ DO BUSINESS WITH THE EAST, BOTH WITH CHINA AND WITH THE REST OF THE ASIA- PACIFIC REGION. MANY INTERNATIONAL COMPANIES AND BANKS HAVE ESTABLISHED REGIONAL HEADQUARTERS IN HONG KONG TO TAKE ADVANTAGE OF AN UNBEATABLE COMBINATION OF AN IDEAL GEOGRAPHICAL POSITION, SUPERB SERVICES AND COMMUNICATIONS, A GOOD WORKFORCE PLUS A SUPPLY OF WELL-EDUCATED ENGLISH-SPEAKING MIDDLE MANAGERS, AND A STABLE, SAFE, AND COMFORTABLE ENVIRONMENT. THE SPECIAL ADVANTAGE OF HONG KONG AS A GATEWAY TO CHINA 18 UNMATCHED. HONG KONG BUSINESSMEN HAVE EXPERTISE AND CONNECTIONS THAT CAN ВЕ OF GREAT HELP TO WESTERN COMPANIES SEEKING TO DO BUSINESS WITH THE DISTANT AND UNFAMILIAR CHINESE MARKET. HONG KONG HAS THE BEST DEEP-WATER PORT ON THE CHINESE COAST AND THE SECOND BUSIEST CONTAINER PORT IN THE WORLD. IT ALSO HAS GOOD AND IMPROVING TRANSPORT LINKS WITH THE CHINESE HINTERLAND - BY ROAD, RAIL, AIR, SRAS AND RIVER. AND HONG KONG'S TRADITIONAL ROLE AS AN OUTLET FOR CHINESE TRADE, WHICH WAS DISRUPTED BY THE INTERNATIONAL EMBARGO AT THE TIME OF KOREAN WAR, IS NOW STRONGER THAN EVER. SEVENTY-EIGHT PER CENT OF HONG KONG'S LARGE RE-EXPORT BUSINESS COMES FROM, OR IS DESTINED FOR CHINA. THIS AMOUNTED TO TRADE BOTH WAYS WORTH US$15 BILLION IN THE YEAR ENDING JUNE 1987. SOME 2,800 CHINESE VESSELS ANNUALLY USE THE PORT OF HONG KONG, NEARLY TEN TIMES THE NUMBER TEN YEARS AGO.

INTERNATIONAL CONFIDENCE IN HONG KONG, MATCHING THE INTERNATIONAL INTEREST IN HONG KONG, HAS BEEN HIGH SINCE THE JOINT DECLARATION. BUT WHAT OF THOSE WHO HAVE THE GREATEST INTEREST OF ALL: THE PEOPLE OF HONG KONG? ARE THEY ALL LEAVING AND TAKING THEIR MONEY WITH THEM, AS SOME OF THE INTERNATIONAL PRESS HAVE ALLEGED? HARDLY. THERE IS AN OUTFLOW, NOT A FLIGHT, OF CAPITAL FROM HONG KONG. THIS IS NORMAL IN ANY STRONG ECONOMY: JAPAN IS A GOOD EXAMPLE OF A SIMILAR BUT LARGER TREND. THE IMPORTANT POINT IS THAT THERE IS NO SHORTAGE OF INVESTMENT IN THE TERRITORY, WHETHER IN PLANT AND MACHINERY (1984-1986 WAS THE BEST THREE-YEAR PERIOD FOR GROWTH IN THIS AREA OF INVESTMENT IN HONG KONG'S HISTORY) OR FOR MULTI-BILLION DOLLAR CONSTRUCTION PROJECTS. HONG KONG BUSINESSMEN MAY BE BUYING INTO COMPANIES OVERSEAS, SUCH AS HUSKY OIL IN CANADA OR MARINE MIDLAND BANK IN THE UNITED STATES; BUT THEY ARE ALSO MAKING INVESTMENTS IN HONG KONG, MANY OF WHICH WILL NOT PAY FOR THEMSELVES UNTIL WELL INTO THE 1990'S OR LATER. MEANWHILE, THE DEMAND AMONG ORDINARY PEOPLE TO BUY HOUSES AND APARTMENTS IS EXTREMELY STRONG, AND NEW SHARE ISSUES ARE HEAVILY OVERSUBSCRIBED. THERE IS NO SIGN THAT HONG KONG PEOPLE ARE AFRAID TO INVEST THEIR MONEY IN HONG KONG.

IT IS WORTH REMEMBERING THAT EMIGRATION HAS BEEN A FACT OF LIFE IN HONG KONG SINCE THE LAST CENTURY. HENCE, IN LARGE PART, THE LARGE CHINESE COMMUNITIES THAT NOW EXIST IN THE UNITED STATES, CANADA, AUSTRALIA, AND BRITAIN. THE LEVEL OF EMIGRATION HAS BEEN MUCH THE SAME AS IT IS NOW FOR MORE THAN TWENTY YEARS. THOSE LEAVING NOW INCLUDE SOME WHO COUNT 1997 AMONG THEIR REASONS. BUT MANY OTHERS LEAVE FOR TRADITIONAL REASONS, PRINCIPALLY TO JOIN FAMILY MEMBERS ALREADY ABROAD. OF THOSE LEAVING BECAUSE OF A LACK OF CONFIDENCE IN THE JOINT DECLARATION, QUITE A FEW, HAVING OBTAINED THEIR "INSURANCE POLICY", HAVE ALREADY RETURNED TO HONG KONG TO LIVE AND WORK, BECAUSE THEY PREFER ITS LIFESTYLE AND THE OPPORTUNITIES PROVIDED BY ITS DYNAMIC ECONOMY. IF CONFIDENCE, BOTH POLITICAL AND ECONOMIC, IS MAINTAINED, MORE WILL RETURN.

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