XN000022-1989-06-22 — Page 7

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THURSDAY, JUNE 22, 1989

MR CHAN OUTLINED THREE TRENDS IN THE HONG KONG ECONOMY WHICH HE BELIEVED WOULD BRING HONG KONG CONTINUED PROSPERITY.

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THEY INCLUDED THE RE-EMERGENCE OF HONG KONG AS AN ENTREPOT, THE DEVELOPMENT OF HONG KONG AS A SERVICE AND SOURCING CENTRE FOR REGION AND HONG KONG'S GROWING TRADE WITH EAST ASIA.

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HE NOTED THAT CALIFORNIANS WERE PARTICULARLY WELL-PLACED TO TAKE ADVANTAGE OF THE PROMISE AND OPPORTUNITIES REPRESENTED BY HONG KONG.

SAID.

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"ALREADY CALIFORNIANS HAVE FOCUSSED ON HONG KONG, MR CHAN

"THERE ARE OVER 50 LARGE MULTINATIONAL CALIFORNIAN COMPANIES OPERATING IN HONG KONG, AND IN 1988 CALIFORNIA'S EXPORTS TO HONG KONG WENT UP BY AN IMPRESSIVE 42 PER CENT TO US$2.42 BILLION.

"HONG KONG IS ONE OF THE MAJOR DESTINATIONS FOR EXPORTS OF CALIFORNIAN FRESH FRUIT AND VEGETABLE PRODUCTS AND WE IMPORTED ALMOST US$120 MILLION WORTH OF THEM LAST YEAR.

"THERE IS A GREAT POTENTIAL FOR FURTHER GROWTH IN ALL THESE PRODUCT AREAS AND IN MANY OTHERS, MR CHAN SAID.

IN THE OTHER DIRECTION, CALIFORNIA WAS A LONG-ESTABLISHED MARKET FOR HONG KONG PRODUCTS, HE ADDED.

"OUR EXPORTS TO CALIFORNIA LAST YEAR WERE UP 5.3 US$3.57 BILLION.

PER CENT ΤΟ

'THE TRADE BALANCE IS IN HONG KONG'S FAVOUR BUT THE GAP IS CLOSING. MORE IMPORTANT THOUGH IS THE FACT THAT MANY OF HONG KONG'S EXPORTS TO CALIFORNIA WERE MANUFACTURED IN HONG KONG BY U.S. COMPANIES.

"THERE ARE 162 FACTORIES IN HONG KONG KNOWN TO BE WHOLLY OR PARTLY OWNED BY U.S. INTERESTS, ALMOST 10 PER CENT OF HONG KONG'S DOMESTIC EXPORTS ARE ACCOUNTED FOR BY THESE FACTORIES, MR CHAN SAID.

ELABORATING ON HONG KONG'S TRADING POLICY, MR CHAN SAID HONG KONG HAD A COMPLETELY OPEN ECONOMY PRACTISING FREE TRADE AND IT MADE GOOD COMMERCIAL SENSE TO HAVE CLOSE LINKS WITH THE WORLD'S LARGEST CAPITALIST STATE,

MR CHAN YESTERDAY LEFT LOS ANGELES FOR SACRAMENTO WHERE НВ WILL MEET CALIFORNIA GOVERNOR GEORGE DEUKMEIJIAN AND BE INTRODUCED ΤΟ THE STATE SENATE AND MEMBERS OF THE ASSEMBLY. TODAY HE TRAVELS TO SAN FRANCISCO FOR THE FINAL LEG OF HIS VISIT TO THE UNITED STATES BEFORE RETURNING TO HONG KONG.

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