XN000022-1990-01-29 — Page 2

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MONDAY, JANUARY 29. 1990

HONG KONG OFFICIAL SPEAKS OF RESILIENCE

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IN

CHINA

HONG KONG HAS THRIVED DESPITE SOME TUMULTUOUS EVENTS AND THE VICISSITUDES OF THE WORLD'S ECONOMY, SAID MR K.C. KWONG. HONG KONG'S DEPUTY COMMISSIONER IN THE UNITED KINGDOM.

SPEAKING AT A SEMINAR ORGANISED BY THE INFLUENTIAL CAMBRIDGE UNION SOCIETY. MR KWONG SAID HONG KONG'S UNIQUE GROWTH AND PROSPERITY HAD MADE IT THE WORLD'S ELEVENTH LARGEST TRADING TERRITORY WITH A PER CAPITA INCOME IN 1988 OF HK$75.000.

THE FACTORS THAT ENABLED HONG KONG TO REACH THE POSITION IT NOW COMMANDS INCLUDE: -

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ITS GEOGRAPHICAL LOCATION AND A DEVELOPED INFRASTRUCTURE WHICH MAKE IT A NATURAL AND PRIMARY HUB IN THE ASIAN AND PACIFIC RIM:

THE DILIGENCE AND VERSATILITY OF ITS PEOPLE WHO HAVE ADAPTED WELL TO THE CHANGING INTERNATIONAL ENVIRONMENT IN WHICH BUSINESSES OPERATE:

THE MARKET-ORIENTED SYSTEM WHICH OPERATES UNDER THE RULE LAW: AND

OF

THE PRAGMATISM OF BOTH CHINA AND HONG KONG IN HANDLING THEIR DELICATE INTERDEPENDENT RELATIONSHIP.

COMPLEMENTING THIS EXCEPTIONAL ECONOMIC GROWTH WERE AMBITIOUS EDUCATIONAL AND SOCIAL PROGRAMMES. MR KWONG SAID. BY 1995 TERTIARY EDUCATION PLACES WOULD BE INCREASED FROM THE PRESENT 14 PER CENT OF THE RELEVANT AGE GROUP TO 25 PER CENT. AND A TRAINING FUND WOULD BE ESTABLISHED TO GIVE MANAGERS THE OPPORTUNITY *TO GAIN EXPERIENCE IN NEW TECHNOLOGIES.

THESE STEPS WOULD HELP MATCH THE SKILLS THE "BRAIN DRAIN" THROUGH EMIGRATION.

SHORTAGE CREATED

BY

IS

"THE NATIONALITY PACKAGE PROPOSED BY THE BRITISH GOVERNMENT ANOTHER FACTOR. IT WILL PROVIDE AN INSURANCE POLICY' FOR MANY OF THE SKILLED. PROFESSIONAL AND ENTREPRENEURIAL PEOPLE AND GIVE THEM THE CONFIDENCE TO REMAIN IN HONG KONG." MR KWONG SAID.

MR KWONG STRESSED THAT THE SINO-BRITISH JOINT DECLARATION WAS THE BEST GUARANTEE FOR HONG KONG'S FUTURE.

IT WAS AN INTERNATIONAL AGREEMENT. LEGALLY BINDING. DEPOSITED AT THE UNITED NATIONS. CHINA ALSO HAD AN EXCELLENT RECORD IN ABIDING BY INTERNATIONAL AGREEMENTS.

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"IN MORE PRACTICAL TERMS. HONG KONG'S ECONOMIC IMPORTANCE TO CHINA CANNOT BE OVER-ESTIMATED. HE SAID. "HONG HONG ACCOUNTS FOR ABOUT A THIRD OF CHINA'S FOREIGN EXCHANGE EARNINGS AND TWO-THIRDS OF ITS OVERSEAS INVESTMENTS. IN ADDITION то BEING A SHOP WINDOW TO CHINA. IT IS A GATEWAY FOR THE MAINLAND TO INTERNATIONAL MARKETS. THE TERRITORY ALSO OFFERS INTERNATIONAL AND LOCAL TECHNOLOGY AND SKILLS TO CHINA. **

/MR KWONG