XN000022-1990-05-21 — Page 3

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1

MONDAY, MAY 21, 1990

"THE

VERY

OFFER

EQUIPMENT ** SHE ADDED.

IN AIRPORT,

PARTICULAR, WILL

OF SUPPLIERS FOR OVERSEAS OPPORTUNITIES CONSTRUCTION AND FOR OPERATION OF THE AIRPORT,

CONSIDERABLE BOTH FOR

GOVERNMENT

TRANSPORT WAS

AS FOR OVERALL FINANCING OF THE AIRPORT AND RELATED

BE DONE BEFORE THE LINKS, MORE WORK WOULD HAVE TO READY TO GO TO THE MARKET.

TO GIVE HER AUDIENCE A PERSPECTIVE VIEW OF HONG KONG'S ECONOMIC SITUATION, MRS CHAN SAID THAT THE GROWTH OF THE GROSS DOMESTIC PRODUCT DOWNTURN THAT WAS AT AROUND 2.5 PER CENT LAST YEAR WAS A CYCLICAL BOUND TO COME SOONER OR LATER.

"WE COULD NOT COPE FOR LONG WITH AN OVERHEATED ECONOMY AND ARE NOT ALONE IN EXPERIENCING A SLOWER GROWTH," SHE SAID.

WE

KONG'S

SHE POINTED OUT THAT THE IMPORTANT THING WAS THAT HONG ECONOMY REMAINED BASICALLY SOUND WITH FULL EMPLOYMENT AND RISING WAGES AND THE FUNDAMENTALS WERE RIGHT.

VIRTUALLY NO EXTERNAL NOW ON A STRONGER

"OUR FISCAL RESERVES ARE STRONG WITH

OUR MONETARY AND FINANCIAL SYSTEMS ARE FOOTING AND WE HAVE A HEALTHY CURRENCY.

DEBT.

OF LINKS WITH

"GEOGRAPHICALLY WE ARE STRATEGICALLY LOCATED AT THE CENTRE THE FASTEST GROWING ASIA/PACIFIC RIM AND WE HAVE STRONG SOUTHERN CHINA, SHE NOTED.

HOWEVER,

STATES THE UNITED WITHDRAWAL POSSIBLE THE

NATION (MFN) STATUS WAS AN CHINA'S MOST FAVOURED GOVERNMENT OF IMMEDIATE THREAT TO HONG KONG'S ECONOMIC WELL-BEING.

BY

OF

THAT DAMAGE CHINA

HONG KONG'S ECONOMY HAD BECOME UNEXTRICABLY INVOLVED WITH

ΤΟ PUNISH OR DESIGNED AND ANYTHING CHINA'S ECONOMICALLY WOULD INEVITABLY PUNISH OR DAMAGE HONG KONG, EXPLAINED.

MRS CHAN

THE SECRETARY FOR ECONOMIC SERVICES SAID BECAUSE OF HONG 'KONG'S SIZE AND ITS GREATER DEPENDENCE ON TRADE, THE WITHDRAWAL OF MFN STATUS KONG'S ECONOMY MORE FROM CHINA WOULD PROPORTIONATELY DAMAGE HONG SERIOUSLY THAN IT WOULD THAT OF CHINA.

"IT WOULD DAMAGE U.S. FIRMS OPERATING IN THIS CONTEXT, IT IS WORTH NOTING THAT THE U.S. IS FOREIGN INVESTOR IN HONG KONG WITH 900 U.S. FIRMS OPERATING THERE, SHE SAID.

LOOKING

ΤΟ

THE

MRS FUTURE,

HONG RONG AND, IN PROBABLY THE LARGEST AND 158 FACTORIES

OF

RESUMPTION

DEVELOPMENTS REMAIN

CHAN SAID THE SOVEREIGNTY BY CHINA IN 1997 WOULD UNDOUBTEDLY INFLUENCE BUT THE BASIC APPROACH TO THE WAY WE MANAGED OUR AFFAIRS WOULD ESSENTIALLY UNCHANGED.

/"THE IMMEDIATE