XN000022-1989-05-22 — Page 14

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MONDAY, MAY 22, 1989

INTERNATIONAL ASPECT OF CONTINUING PROSPERITY

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A GROUP OF ABOUT 60 BUSINESS EXECUTIVES AND ACADEMICS IN U.S. PORT CITY OF TACOMA, WASHINGTON STATE, HAVE BERN TOLD THAT THE GROWING INTERNATIONALISATION OF HONG KONG IS JUST ONE DEVELOPMENT WHICH AUGURS WELL FOR THE FUTURE OF THE TERRITORY.

IN AN ADDRESS TO THE WORLD AFFAIRS COUNCIL, THE DIRECTOR OF THE HONG KONG ECONOMIC AND TRADE OFFICE FOR THE WESTERN UNITED STATES, MR PETER JOHNSON, SAID THAT OVERSEAS COMMUNITIES IN HONG KONG CONTINUE TO GROW WITH OVERSEAS BANKS, PROFESSIONAL FIRMS AND BUSINESSES OPENING UP ALL THE TIME.

"IN THE RETAIL BUSINESS JAPANESE INTERESTS OCCUPY A PROMINENT PLACE. MOST OF THE LARGE JAPANESE DEPARTMENT STORES ARE REPRESENTED. IT IS RUMOURED THAT THEY TAKE AS MUCH AS 30 PER CENT OF THE TOTAL RETAIL TRADE IN HONG KONG, MR JOHNSON SAID IN HIS SPEECH ON FRIDAY (MAY 19).

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POINTING OUT THAT THE UNITED KINGDOM, TOO, WAS WELL REPRESENTED IN THE RETAIL TRADE, MR JOHNSON QUESTIONED WHY AMERICAN STORE CHAINS HAD NOT SEEN FIT TO OPEN IN HONG KONG. "THERE REMAINS A SUBSTANTIAL FUND OF GOOD WILL FOR BOTH THE UNITED STATES AND THINGS AMERICAN," HE SAID.

AT A

"OVERSEAS INVESTMENT IN MANUFACTURING INDUSTRY CONTINUES GOOD PACE, AND ANY DIFFICULTIES HERE SEEM TO BE TECHNICAL OR RELATED TO RISING COSTS IN HONG KONG, RATHER THAN RELATED ΤΟ DOUBTS ABOUT 1997. MR JOHNSON NOTED.

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HE ADDED THAT AS PART OF HONG KONG'S EFFORTS ΤΟ INTERNATIONALISE. THE GOVERNMENT HAD JUST PUBLISHED PROPOSALS THAT WOULD PERMIT FOREIGN LAW FIRMS TO ESTABLISH THEMSELVES ON A FIRMER BASIS THAN HITHERTO.

CITING THE GROWING ECONOMIC AND TRADING RELATIONSHIP WITH CHINA AS ANOTHER FACTOR IN HONG KONG'S CONTINUING PROSPERITY AND POSITION AS A MAJOR CENTRE ON THE PACIFIC RIM AFTER 1997, MR JOHNSON SAID THAT IN THE PAST FEW YEARS CHINA HAD BECOME HONG KONG'S NUMBER ONE TRADING PARTNER.

"BETWEEN 1987 AND 1988 TWO-WAY TRADE BETWEEN US HAS INCREASED ALMOST 27 TIMES AND NOW STANDS AT US$37 BILLION.

"IN THE PROCESS, HONG KONG HAS ALSO BECOME CHINA'S TRADING PARTNER. WE ARE ALSO CHINA'S LARGEST SOURCE OF INVESTMENT, AND THE SOURCE OF OVER ONE THIRD OF CHINA'S TOTAL EXCHANGE EARNINGS.

LARGEST OUTSIDE

FOREIGN

"IN ADDITION