XN000022-1990-07-03 — Page 2

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TUESDAY, JULY 3, 1990

GOVERNOR BRIEFS SCOTTISH FINANCIAL COMMUNITY

THE GOVERNOR, SIR DAVID WILSON, HAS PRAISED THE MAJOR ROLE PLAYED BY SCOTLAND'S FINANCIAL COMMUNITY IN HONG KONG AND SOUTH EAST ASIA.

HE MADE THE REMARK AT A LUNCH HOSTED BY THE ROYAL BANK OF SCOTLAND AND AT A SEMINAR ORGANISED BY SCOTTISH FINANCIAL ENTERPRISE, AN EDINBURGH-BASED ORGANISATION WHICH PROMOTES AND REPRESENTS SCOTLAND'S FINANCIAL SERVICES SECTOR, DURING HIS VISIT ΤΟ EDINBURGH ON MONDAY,

SIR DAVID TOLD THE SEMINAR THAT HONG KONG REMAINED "AN EXCELLENT BASE FOR BUSINESS WITH CHINA AND EAST ASIA".

HE EXPLAINED TO THE BANKERS, INSURANCE EXECUTIVES MANAGERS PRESENT THAT THE JOINT DECLARATION HAD PROVIDED A WITHIN WHICH HONG KONG'S AUTONOMY WOULD BE PRESERVED REMARKABLE ECONOMIC SYSTEM CONTINUE TO DEVELOP AFTER 1997.

AND FUND FRAMEWORK AND ITS

SIR DAVID POINTED OUT THAT HONG KONG HAD EXPERIENCED REAL ECONOMIC GROWTH OF OVER EIGHT PER CENT PER ANNUM FOR 20 YEARS. "THIS HAS GIVEN US A PER CAPITA GDP AMONG THE HIGHEST IN ASIA, AND AHEAD OF FOUR MEMBERS OF THE EUROPEAN COMMUNITY," HE SAID.

SIR DAVID ACKNOWLEDGED THAT EVENTS OF LAST SUMMER IN CHINA HAD A DAMAGING PSYCHOLOGICAL IMPACT ON HONG KONG. "BUT HONG KONG IS NOT WALLOWING IN DESPAIR. IT IS A DYNAMIC ECONOMY DETERMINED A SUCCESS OF THE FUTURE.

HAD

TO MAKE

"HONG KONG REMAINS A GREAT FINANCIAL AND BUSINESS CENTRE FOR CHINA, THE FAR EAST AND THE WORLD," HE SAID.

SIR DAVID SAID IT WAS IN CHINA'S INTEREST ΤΟ ENSURE THE GUARANTEES PROVIDED UNDER THE JOINT DECLARATION WERE MAINTAINED. HONG KONG WAS CHINA'S MAIN TRADING PARTNER, THE SOURCE OF 70 PER CENT OF CHINA'S EXTERNAL INVESTMENT, AND OVER 30 PER CENT OF ITS FOREIGN EXCHANGE. IT WAS THE ONLY DEEPWATER PORT ON THE COAST OF SOUTH CHINA.

THE GOVERNOR OUTLINED THE HONG KONG GOVERNMENT'S PLANS TO INVEST IN THE LONG-TERM DEVELOPMENT OF HONG KONG'S PORT AND AIRPORT INFRASTRUCTURE. THESE PLANS WOULD BENEFIT THE FUTURE PROSPERITY OF THE SAR GOVERNMENT AFTER 1997.

SIR DAVID ALSO OUTLINED THE DEVELOPMENT AND REFORM OF HONG KONG'S FINANCIAL MARKETS SINCE THE WORLD CRASH OF OCTOBER 1987. HE EXPLAINED HOW THE HONG KONG GOVERNMENT HAD MOVED QUICKLY TO SET

UP A SECURITIES REVIEW COMMITTEE UNDER MR IAN HAY DAVISON IN THE AFTERMATH OF THE MARKET CRASH.

IMMEDIATE

/FOLLOWING THE