XN000022-1989-10-11 — Page 19

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WEDNESDAY, OCTOBER 11, 1989

THE GOVERNOR POINTED OUT THAT THE OVERALL ECONOMIC EFFECT ON HONG KONG OF THE EVENTS IN CHINA WOULD PROBABLY BE A SLIGHT CHECK TO THE RATE OF THE TERRITORY'S ECONOMIC EXPANSION.

"THE FINANCIAL SECRETARY'S EARLIER ESTIMATE WAS THAT OUR GROSS DOMESTIC PRODUCT WOULD GROW BY SIX PER CENT THIS YEAR, COMPARED TO SEVEN PER CENT IN 1988.

"THIS FORECAST HAS NOW BEEN ADJUSTED SLIGHTLY DOWNWARDS. BUT, EVEN WITH THIS SLIGHTLY LOWER FORECAST, HONG KONG SHOULD STILL ENJOY A HEALTHY LEVEL OF GROWTH BY WORLD STANDARDS, HE SAID.

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THE GOVERNOR SAID HONG KONG MUST FACE, AND FACE IN A CLEAR-HEADED WAY, THE FACT THAT ON JULY 1, 1997, THE TERRITORY WOULD BECOME A SPECIAL ADMINISTRATIVE REGION OF THE PEOPLE'S REPUBLIC OF CHINA.

"HONG KONG IS LINKED TO CHINA BUT, IN ANOTHER IMPORTANT SENSE, SEPARATE FROM IT.

"THAT WILL CONTINUE TO BE THE CASE IN THE FUTURE. UNDER THE CONCEPT OF 'ONE COUNTRY, TWO SYSTEMS'.

"WE HAVE OUR OWN LAWS AND FREEDOMS WHICH WE CHERISH. THEY MUST NOT BE ERODED.

"EQUALLY, WE SHOULD USE THEM WITH A SENSE OF RESPONSIBILITY AND SELF-RESTRAINT, HE SAID.

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HE POINTED OUT THAT FOR MANY YEARS THE COMMUNITY HAD RECOGNISED THE IMPORTANCE OF NOT BECOMING DIRECTLY INVOLVED IN CHINA'S OFTEN COMPLICATED DOMESTIC POLITICS.

"AT THE SAME TIME, GIVEN BOTH THE ECONOMIC AND POLITICAL REALITIES, THERE IS EVERY REASON TO EXPAND OUR ALREADY CLOSE ECONOMIC LINKS WITH THE MAINLAND.

"WE CAN STRENGTHEN THE BASIS OF OUR SPECIAL FUTURE POLITICAL STATUS BY THE CONTRIBUTION THAT WE MAKE TO THE MODERNISATION OF THE CHINESE ECONOMY AND BY THE ACCESS TO WORLD MARKETS, ADVANCED TECHNOLOGY AND EXPERTISE THAT WE CAN PROVIDE FOR CHINA, HE SAID.

SIR DAVID SAID HONG KONG HAD BEEN THROUGH DIFFICULT TIMES SINCE HE LAST ADDRESSED THE COUNCIL AT THE BEGINNING OF A NEW SESSION AND HAD BEEN FORCEFULLY REMINDED HOW VULNERABLE THE TERRITORY WAS то DEVELOPMENTS WHICH OCCURRED OUTSIDE ITS BORDERS OVER WHICH IT HAD NO CONTROL.

THE GOVERNOR POINTED OUT THAT THIS WAS NOT THE FIRST CRISIS THAT HONG KONG HAD HAD TO CONFRONT AND THAT WHEN

IN THE PAST THE TERRITORY

HAD

EMERGED WITH

FACING DIFFICULTIES NEW CONFIDENCE AND

STRENGTH.

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