XN000022-1989-12-02 — Page 2

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SATURDAY, DECEMBER 2, 1989

PROSPEROUS AND STABLE HK IS IN CHINA'S INTEREST: SES

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A PROSPEROUS AND SATBLE HONG KONG IS AND ALWAYS WILL BE CHINA'S INTEREST, THE SECRETARY FOR ECONOMIC SERVICES, MRS ANSON CHAN, SAID TODAY (SATURDAY).

OFFICIATING AT A SEMINAR ON ECONOMIC PROSPECTS FOR HONG KONG IN THE 1990'S MRS CHAN SPOKE OF HONG KONG'S VERY CLOSE ECONOMIC TIES WITH CHINA WHICH HAD PROVED MUTUALLY BENEFICIAL.

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"WITH THE ADOPTION OF ECONOMIC REFORMS AND OPEN DOOR POLICIES BY CHINA, HONG KONG HAS BECOME AN IMPORTANT GATEWAY TO CHINA.

"WE HAVE RESUMED OUR TRADITIONAL ROLE AS A MAJOR ENTREPOT SERVING NOT ONLY CHINA BUT ALSO THE ASIA PACIFIC REGION AT LARGE.

"OUR RE-EXPORT TRADE, PARTICULARLY WITH CHINA, HAS RISEN SUBSTANTIALLY. ALONG WITH THE RAPID EXPANSION OF VISIBLE TRADE, THERE HAS ALSO BEEN A LARGE INCREASE 1N INVISIBLE TRADE, INCLUDING A SUBSTANTIAL AMOUNT OF TRADE-RELATED SERVICES," SHE SAID.

HONG KONG AND CHINA ARE NOW EACH OTHER'S LARGEST TRADING PARTNER AND HONG KONG IS CHINA'S MOST IMPORTANT SOURCE OF INWARD INVESTMENT.

"DESPITE RECENT STRAINS ON OUR RELATIONSHIP, I AM CONFIDENT THAT WITH MUTUAL TRUST AND UNDERSTANDING, THE TIES THAT WE HAVE DEVELOPED OVER THE PAST 10 YEARS WILL CONTINUE ΤΟ STRENGTHEN, SHE SAID.

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ON HONG KONG'S ECONOMIC PROSPECTS IN GENERAL, MRS CHAN POINTED OUT THAT THE TERRITORY LAY AT THE HEART OF THE ASIA PACIFIC RIM WHERE GROWTH WAS EXPECTED TO OUTSTRIP THOSE OF OTHER REGIONS.

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"HONG KONG IS NOW THE WORLD'S 11TH LARGEST TRADING ENTITY WITH A FUNDAMENTALLY SOUND ECONOMY AND OUR CONTINUED INVESTMENTS OUR HUMAN RESOURCES AND IN OUR INFRASTRUCTURE TO UNDERPIN ECONOMIC GROWTH, HONG KONG SHOULD REMAIN AN ATTRACTIVE PLACE FOR PEOPLE TO LIVE AND WORK IN.

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"WE ARE THUS WELL PLACED TO TAKE FULL ADVANTAGE OF THE OPPORTUNITIES THAT LIE AHEAD. SHE NOTED.

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FLEXIBILITY AND RESILIENCE HAVE BEEN THE MAIN ATTRIBUTES UNDERPINNING OUR SUCCESS IN THE PAST. AND THEY WILL CONTINUE TO BE THE KEY TO OUR ECONOMIC PROSPECTS IN THE FUTURE, SHE SAID.

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AFTER THREE SUCCESSIVE YEARS OF STRONG ECONOMIC GROWTH, OUR ECONOMY HAS SLOWED DOWN MARKEDLY. THIS SHOULD HELP TO EASE THE CURRENT PRESSURES ON PRICES AND LABOUR SUPPLY AND REDUCE THE RISK OF CONTINUING HIGH INFLATION, SHE POINTED OUT.

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