XN000022-1988-11-18 — Page 9

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FRIDAY, NOVEMBER 18, 1988

TRADING

HE NOTED THAT BOTH COUNTRIES WERE EACH OTHER'S LARGEST PARTNER AND EACH OTHER'S LARGEST SOURCE OF DIRECT INVESTMENT, WITH HONG KONG/CHINA TRADE EXPANDING AT AN ALMOST 40 PER CENT ANNUAL GROWTH RATE SINCE 1979.

"A RECENT DEVELOPMENT IS HONG KONG'S ROLE AS CHINA'S GROWING TRADE WITH SOUTH KOREA AND TAIWAN,

INTERMEDIARY

H MR LO SAID.

FOR

"HONG KONG IS ESTIMATED TO HAVE HANDLED UP TO 80 PER CENT OF ALL TAIWAN-CHINA TRADE LAST YEAR, VALUED IN TOTAL AT US$1.5 BILLION.

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MR LO, MINISTER AT THE HONG KONG ECONOMIC AND TRADE OFFICE IN WASHINGTON DC, WAS SPEAKING AT THE INAUGURAL BUSINESS CONSORTIUM OF ASIAFEST, A FOUR-DAY COMMERCIAL AND CULTURAL FESTIVAL WITH PARTICIPATION FROM HONG KONG, INDIA, PAKISTAN, PHILIPPINES, SINGAPORE, TAIWAN AND THAILAND.

HE ATTRIBUTED HONG KONG'S POWERFUL ECONOMIC PERFORMANCE TO THE PRACTICE OF FREE TRADE, THE LACK OF EXCHANGE CONTROLS AND DOMESTIC SUBSIDIES, LOW TAXATION AND A GOVERNMENT ROLE LIMITED ΤΟ THE PROVISION OF THE LEGAL AND INFRASTRUCTURAL FRAMEWORK NECESSARY EFFICIENT BUSINESS.

"HONG KONG'S FAVOURABLE BUSINESS CLIMATE HAS ATTRACTED 900 U.S. COMPANIES TO THE TERRITORY,

*

MR LO SAID.

FOR

SOME

THIS U.S. CONFIDENCE WAS SHARED BY INDUSTRIALISTS FROM OTHER COUNTRIES. LAST YEAR, 240 FOREIGN-FUNDED COMPANIES WERE REGISTERED AND RETAINED IMPORTS OF CAPITAL GOODS GREW BY 26 PER CENT IN REAL TERMS.

EVIDENCE OF THIS CONFIDENCE IN HONG KONG'S FUTURE WAS THE LARGE AMOUNTS OF CAPITAL COMMITTED BY THE PRIVATE SECTOR ΤΟ PROJECTS THAT WOULD NOT REAP DIVIDENDS UNTIL WELL INTO THE NEXT CENTURY.

"THIS LONG-TERM INVESTMENT, COMBINED WITH THE IMPORTANCE AND DYNAMISM OF THE ASIA-PACIFIC REGION, AND THE POTENTIAL OF CHINA, PROVIDES A SOLID BASIS FOR THE CONTINUING PROSPERITY OF HONG KONG, SAID.

HE

"

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