XN000022-1990-09-29 — Page 2

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SATURDAY, SEPTEMBER 29, 1990

FS SPEAKS ON HK ISSUES ON U.S. TV

SOLUTION

A GREAT

THE HONG KONG GOVERNMENT BELIEVES IT HAS THE RIGHT FOR THE NEW AIRPORT, A SOLUTION THAT HAS BEEN REACHED AFTER DEAL OF CONSIDERATION, THE FINANCIAL SECRETARY, SIR PIERS JACOBS, SAID IN A TELEVISION INTERVIEW IN NEW YORK LAST NIGHT (FRIDAY).

SIR PIERS WAS RESPONDING TO A QUESTION ABOUT THE DIFFERENCES OVER THE NEW AIRPORT WHEN HE APPEARED ON THE FINANCIAL NEWS NETWORK

(FNN) "CDO SPOTLIGHT" PROGRAMME.

HE SAID IT WAS A PROJECT THAT THE GOVERNMENT HAD BEEN STUDYING FOR MANY YEARS SINCE 1979 AND IT WAS NOT SOMETHING THAT WAS BEING DONE FOR CONFIDENCE REASONS AS HONG KONG REALLY NEEDED THE NEW AIRPORT.

HE SAID JUST LIKE ANY INFRASTRUCTURAL DEVELOPMENT, THERE WERE PEOPLE EXPRESSING DIFFERENT VIEWS, BUT IT HAD BEEN ACCEPTED THAT THE NEW AIRPORT WAS GOING TO BE BUILT IN THE RIGHT PLACE.

LINKS.

HE SAID THE ONLY DIFFERENCES WERE ON DETAIL AND TRANSPORTATION

SIR PIERS SAID THE NEW AIRPORT WOULD BE BUILT ESSENTIALLY BY THE HONG KONG GOVERNMENT AND BY STATUTORY AUTHORITIES. HE SAID MANY CONTRACTORS WOULD BE INVOLVED AND NOTED THAT AMERICANS ALREADY HAD A VISIBLE PRESENCE.

IN THE INTERVIEW, SIR PIERS ALSO DISCUSSED FOREIGN INVESTMENT IN HONG KONG, COMPANIES RELOCATING, CAPITAL FLIGHT, EMIGRATION, THE PASSAGE OF THE U.S. TEXTILE BILL AND THE TRANSITION.

SIR PIERS SAID FOREIGN INVESTMENT IN HONG KONG HAD BEEN "QUITE GOOD". HE SAID THE JAPANESE WERE INVESTING IN HONG KONG AS WERE THE AMERICANS WHO HAD A VERY SUBSTANTIAL US$7 BILLION INVESTMENT THERE. IN ADDITION, THERE WERE A LARGE NUMBER OF INDUSTRIAL CONCERNS AS WELL AS AMERICAN, JAPANESE AND SOME EUROPEAN BANKS.

HF SAID A FEW COMPANIES WERE RELOCATING, BUT IN NET TERMS HONG KONG HAD HAD MORE NET INWARD INVESTMENT THAN OUTWARD INVESTMENT,

AS FOR CLAIMS OF CAPITAL FLIGHT HR SAID THE FIGURES TOLD A DIFFERENT STORY. HE SAID HONG KONG DOLLAR DEPOSITS AND FOREIGN CURRENCY DEPOSITS HAD BEEN GROWING IN QUITE A HEALTHY MANNER WITH THE EXCHANGE RATE REMAINING STABLE AND TRADING BEING ON THE STRONG SIDE OF THE LINK.

SIR PIERS SAID HONG KONG WAS 4 PLACE OF PASSIONATE OPEN TRADERS AND DID NOT LIKE ANYTHING THAT WAS RESTRICTIVE OF TRADE PRACTICES SO IT WAS HOPED THAT THE U.S. TEXTILE BILL WOULD BE VETOED.

HE SAID HONG KONG WAS LIKE A RATHER DIFFERENT REGIME EVERYONE COULD TRADE IN AN OPEN MANNER TOGETHER.

WHERE

/HE SAID