XN000022-1988-10-05 — Page 4

WEDNESDAY, OCTOBER 5, 1988

DESCRIBING PLANS FOR THE CONTAINER PORT AND RECENT GROWTH OF THE AIRPORT, MRS CHAN SAID THAT PROJECTS COMPLETED INVOLVED THE NETWORK, INCLUDING THE LIGHT RAIL CROSSING AND THE TATE'S CAIRN TUNNEL.

OTHER INFRASTRUCTURE PLANNING OR UPGRADING OF THE ROAD AND RAIL SYSTEM, A NEW ROAD-RAIL HARBOUR

SHE POINTED OUT THAT THE LATTER TWO PROJECTS WERE BEING UNDERTAKEN BY CONSORTIA INCLUDING JAPANESE, CHINESE, BRITISH AND LOCAL BUSINESS INTERESTS AT A TOTAL COST OF $5.4 BILLION.

MRS CHAN CITED THIS AS DEMONSTRATING THE CONTINUING CONFIDENCE OF THE INTERNATIONAL COMMUNITY IN HONG KONG, PARTICULARLY AS THE CONSORTIA WOULD NOT RECOVER THEIR COSTS UNTIL WELL BEYONG THE YEAR 2000.

TURNING TO ECONOMIC RELATIONS BETWEEN HONG KONG AND CHINA, MRS CHAN SAID THAT THESE HAD UNDERGONE RAPID GROWTH SINCE 1978 WHEN CHINA EMBARKED ON ITS 'OPEN DOOR' POLICY.

"HONG KONG AND CHINA ARE NOW EACH OTHER'S LARGEST TRADING PARTNERS, HONG KONG ACCOUNTS FOR MORE THAN A QUARTER OF CHINA'S TOTAL EXTERNAL TRADE, WHILST HONG KONG/CHINA TRADE AS A PERCENTAGE OF HONG KONG'S TOTAL EXTERNAL TRADE HAS INCREASED FROM 9.27 PER CENT IN 1978 TO 27.17 PER CENT IN 1987, MRS CHAN SAID.

KONG.

*

CHINA CONTINUED TO RUN A LARGE SURPLUS ON ITS TRADE WITH HONG

GROWTH IN TRADE

SHE SUGGESTED THAT THE CONCEPT OF A 'PORT-HINTERLAND RELATIONSHIP' MIGHT BE USED TO DESCRIBE THE RAPID BETWEEN HONG KONG AND SOUTHERN CHINA.

"TRADE RELATIONSHIPS BETWEEN HONG KONG AND

THE PEARL RIVER

DELTA ARE PARTICULARLY CLOSE.

"SINCE 1986, GUANGDONG HAS BECOME THE TOP EXPORTING PROVINCE IN CHINA. NEARLY 70 PER CENT OF ITS EXPORTS CAME TO HONG KONG WITH A TOTAL VALUE OF US$3 BILLION," MRS CHAN SAID.

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