XN000022-1988-12-16 — Page 35

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I DON'T MYSELF THINK WE SHOULD ANTICIPATE A SUDDEN ENDING OF THAT PROCESS. PEOPLE ARE GOING TO BE NERVOUS ABOUT THE FUTURE. SOME OF THOSE PEOPLE ARE GOING TO LOOK FOR AN INSURANCE POLICY BY GOING ABROAD. I HOPE THAT SOME OF THOSE PEOPLE WHO GO ABROAD WILL THEN COME BACK TO HONG KONG TO CONTRIBUTE TO ITS FUTURE.

MANY, MANY PEOPLE, BY FAR AND AWAY THE VAST MAJORITY, ALWAYS STAY HERE AND WILL COMMIT THEMSELVES ΤΟ THE FUTURE OF KONG, AND WE MUST THINK OF THOSE PEOPLE, TOO.

WILL HONG

THE BR

LIU: THE EARLY 1990'S APPEAR TO BE THE WATERSHED IN RUN-UP TO 1997. AS YOU HAVE JUST MENTIONED, THE BASIC LAW WILL PROMULGATED, AND A LOT OF PEOPLE EXPECT TO DECIDE THEN WHETHER то LEAVE OR NOT, AND INVESTORS ARE ALSO ADOPTING A WAIT AND SEE ATTITUDE. NOW WHAT SORT OF CONTINGENCY PLANS ARE NEEDED?

GOVERNOR: WELL, I WOULD PICK YOU UP ON THAT INVESTORS ARR ADOPTING A WAIT AND SEE ATTITUDE.

LIU: FOR LONG TERM INVESTMENT.

GOVERNOR: WELL, NO, LOOK AT THE LONG TERM INVESTMENT. TATE'S CAIRN TUNNEL I MENTIONED A MOMENT AGO. THAT IS A VERY LARGE, VERY LONG TERM INVESTMENT. THE SECOND CROSS HARBOUR TUNNEL IS VERY LARGE, VERY LONG TERM. PEOPLE WON'T GET THEIR MONEY BACK UNTIL WELL INTO THE NEXT CENTURY. THE CONTAINER TERMINAL IS THE SAME. SO I DON'T THINK IT IS TRUE TO SAY THAT INVESTORS ARE WAITING TO SEE WHAT IS GOING TO HAPPEN. THERE IS A LOT OF INVESTMENT GOING ON.

LIU: WELL, I THINK A LOT IN THE MANUFACTURING INDUSTRY ARE CERTAINLY ADOPTING THAT ATTITUDE, IT WOULD APPEAR TO BE.

GOVERNOR: WELL, IF YOU LOOK AT THE FIGURES FOR LAST YEAR OF RETAINED IMPORTS, OF CAPITAL GOODS, WHICH IS ONE OF THE WAYS OF MEASURING THIS, THEY WERE ACTUALLY AT AN ALL-TIME HIGH LAST YEAR. THEY ARE NOT QUITE SO HIGH THIS YEAR BECAUSE THE RATE OF GROWTH OF THE ECONOMY IS SLOWING DOWN. BUT THERE IS NO SHORTAGE OF INVESTMENT IN HONG KONG AND I THINK THAT IS THE IMPORTANT POINT. IN FACT IT IS A PLACE WHICH IS MAKING SO MUCH MONEY THAT THERE IS A LOT OF INVESTMENT GOING OVERSEAS, AS PEOPLE BROADEN THE BASE OF THEIR INVESTMENT.

LIU: BUT SURELY THE GOVERNMENT WOULD HAVE SOME SORT OF CONTINGENCY PLANS FOR VARIOUS SCENARIOS THAT MIGHT HAPPEN IN THE NEXT FEW YEARS.

GOVERNOR: WELL, I DON'T THINK IT IS SOMETHING YOU TALK OF IN TERMS OF CONTINGENCY PLANS IF WE ARE DEALING WITH INVESTMENT. WHAT

WE ARE TRYING TO DO IS TO MAKE SURE THAT INVESTMENT IS ENCOURAGED AND PEOPLE GO ON INVESTING IN THE SAME WAY THAT THEY HAVE BEEN INVESTING UP TO NOW.

ONE OF THE REASONS I WENT RECENTLY ON A TRIP TO WESTERN EUROPEAN COUNTRIES WAS PRECISELY WITH THAT OBJECTIVE, TO EXPLAIN WHAT THE ARRANGEMENTS ARE FOR THE FUTURE, TO EXPLAIN WHAT IS HAPPENING IN HONG KONG NOW, WITH THE OBJECTIVE OF ENCOURAGING PEOPLE TO CONTINUE TO INVEST IN HONG KONG. THAT IS ONE THING.

ONE OTHER THING THAT I WOULD MENTION 19 THAT ALL THESE LONG-TERM INFRASTRUCTURAL PROJECTS THAT I WAS TALKING ABOUT ARE HUGE INVESTMENTS IN HONG KONG. THEY WILL HELP, I BELIEVE, TO KEEP THE ECONOMY DYNAMIC AND BUOYANT IN THE 1990'S WHEN YOU MIGHT GET SOME DEGREE OF NERVOUSNESS.

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