XN000022-1990-07-19 — Page 7

THURSDAY, JULY 19, 1990

BETWEEN 1979 AND 1988, HONG KONG ACCOUNTED FOR TWO-THIRDS OF THE CONTRACTUAL VALUE OF FOREIGN INVESTMENT IN CHINA, AS WELL AS A LARGE PROPORTION OF CHINA'S FOREIGN LOANS.

AT THE END OF MARCH 1989,

THE OUTSTANDING CLAIMS OF HONG KONG'S BANKING SECTOR ON CUSTOMERS IN CHINA AMOUNTED TO US$5.4 BILLION. THE SOUTHERN PROVINCE OF GUANGDONG ATTRACTED THE LARGEST PROPORTION OF FOREIGN INVESTMENT IN CHINA AMOUNTING TO 45 PER CENT OF THE TOTAL WHILE HONG KONG IN TURN ACCOUNTED FOR ABOUT 70 PER CENT OF REALISED FOREIGN INVESTMENT THERE AND NEARLY ALL OF ITS OUTWARD PROCESS ING ARRANGEMENTS.

HONG KONG NON-LOCAL

MR LEUNG SAID INVESTMENT HAD LIKEWISE FLOWED INTO FROM CHINA WHICH WAS WIDELY REGARDED AS THE LARGEST INVESTOR WITH CUMULATIVE INVESTMENT IN ALL ECONOMIC SECTORS ESTIMATED AT BETWEEN US$6 BILLION AND US$8 BILLION.

HE SAID CHINA BECAME HONG KONG'S LARGEST TRADING PARTNER IN 1985 AND LAST YEAR ACCOUNTED FOR 30 PER CENT OF HONG KONG'S TOTAL TRADE COMPRISING 19.3 PER CENT OF DOMESTIC EXPORTS, 30 PER CENT of re- EXPORTS AND 35 PER CENT OF IMPORTS.

THESE FACTS, HE SAID, BORE OUT HONG KONG'S UNIQUE ROLE AS THE GATEWAY TO CHINA.

MR LEUNG SAID WITH THE IMPENDING REVERSION OF SOVEREIGNTY TO CHINA ON JULY 1 1, 1997 QUESTION MARKS BEGAN TO APPEAR, ESPECIALLY, AFTER JUNE LAST YEAR AND THE WORLD WAS BEGINNING TO ASK, OPENLY OR INWARDLY, WHETHER HONG KONG WAS A RISK OR AN OPPORTUNITY?

"NOTHING CAN ALTER HONG KONG'S GEO-POLITICAL AND ECONOMIC POSITION A9 THE GATEWAY TO CHINA IN THE HUB OF THE DYNAMIC ASIA-PACIFIC REGION. THIS IS BORNE OUT BY THE FACT THAT SINCE MID-1989, WHILE SENTIMENTS HAVE BECOME MORE CAUTIOUS, THERE HAS BEEN A SIZEABLE LIST OF NEW INVESTMENTS IN HONG KONG WORTH NEARLY US$5 BILLION INVOLVING BOTH OVERSEAS AND LOCAL INTERESTS," HE SAID.

FOR ITS PART, MR LEUNG POINTED OUT, THE HONG KONG GOVERNMENT HAD A CLEAR VISION OF WHAT IT WAS TRYING TO ACHIEVE, AND WAS CONTINUING TO PLAN FOR AND INVEST IN THE FUTURE TO TAKE HONG KONG THROUGH TO THE NEXT CENTURY.

HE SAID THERE WAS TO BE A NEW MARK-UP IN THE LEGISLATIVE COUNCIL NEXT YEAR AND THE GOVERNMENT WAS WORKING TO INTRODUCE A BILL OF RIGHTS. TERTIARY EDUCATION WAS BEING EXPANDED WITH AN EXPENDITURE OF US$1.7 BILLION IN THE NEXT DECADE; A NEW WHITE PAPER ON SOCIAL WELFARE WAS BEING PREPARED; PUBLIC HEALTH SERVICES WERE BEING EXPANDED; MORE THAN HALF A MILLION NEW PUBLIC HOUSING FLATS WERE ΤΟ BE BUILT FROM NOW UNTIL 2001 AND THE GOVERNMENT WAS TO SPEND US$2.6 BILLION ON IMPROVING THE ENVIRONMENT.

MR LEUNG SAID THERE WOULD BE ENORMOUS INVESTMENTS IN HONG KONG'S PHYSICAL INFRASTRUCTURE WITH THE DEVELOPMENT OF THE NEW AIRPORT AND PORT FACILITIES WHICH WILL ALSO SEE THE OPENING UP OF NEW AREAS FOR INDUSTRIAL, COMMERCIAL AND RESIDENTIAL USE.

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