XN000022-1991-01-07 — Page 2

MONDAY, JANUARY 7, 1991

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HK-AN IRREPLACEABLE GATEWAY TO CHINA: STI

TWO UNRELATED BUT EQUALLY IMPORTANT EVENTS SCHEDULED ΤΟ OCCUR ON JANUARY 15 WOULD HAVE POTENTIALLY FAR-REACHING ECONOMIC CONSEQUENCES, THE SECRETARY FOR TRADE AND INDUSTRY, MR JOHN CHAN, SAID IN LONDON TODAY (MONDAY).

MR CHAN TOLD THE HONG KONG EXECUTIVES

CLUB THAT BOTH EVENTS

THE SITUATION IN THE PERSIAN GULF AND A MEETING IN GENEVA ON THE URUGUAY ROUND OF GENERAL AGREEMENT ON TARIFFS AND TRADE (GATT) NEGOTIATIONS

HAD, IN DIFFERENT WAYS, POTENTIALLY FAR-REACHING CONSEQUENCES FOR THE WORLD ECONOMY, AND AS A CONSEQUENCE FOR HONG KONG'S WHICH WAS SO OPEN AND EXPOSED TO EXTERNAL INFLUENCES.

HE SAID SHORT-TERM PROBLEMS AND UNCERTAINTIES SUCH AS THESE OFTEN LOOM VERY LARGE IN OUR THINKING.

"THEY ARE ALSO USUALLY RATHER WORRYING. WE HAVE TO LEARN то FACE THEM, TO ANALYSE THE SITUATION CAREFULLY AND ΤΟ MAP OUT RESPONSES THAT WILL MAXIMISE THE OPPORTUNITIES AND MINIMISE THE RISKS.

"BUT WE MUST ALSO LEARN TO PUT SUCH SHORT-TERM PROBLEMS AND UNCERTAINTIES IN THEIR PROPER PERSPECTIVE AND NOT ALLOW THEM TO BLOCK OUR VISION, FOR, OTHERWISE, WE SHALL NEVER BE ABLE TO LOOK BEYOND OUR NOSES, MR CHAN SAID.

MR CHAN NOTED THAT THIS WAS AN IMPORTANT POINT TO BEAR IN MIND WHEN LOOKING AT HONG KONG AT THIS PARTICULAR TIME.

"WE WERE GOING THROUGH A UNIQUE EXPERIENCE, A LONGISH PERIOD OF TRANSITION LEADING TO AN UNPRECEDENTED CONSTITUTIONAL CHANGE.

"THE SITUATION IS A SENSITIVE ONE. IT IS ALSO FULL OF APPARENT CONTRADICTIONS WHICH DEMAND A GREAT DEAL

OF IMAGINATION TO COMPREHEND AND RECONCILE,' HE SAID.

中中

FOR A START, WHILE THE PROSPECTIVE CHANGE FROM BEING A BRITISH DEPENDENT TERRITORY TO BECOMING A SPECIAL ADMINISTRATIVE REGION UNDER CHINESE SOVEREIGNTY WAS TRULY UNPRECEDENTED, IT WAS MEANT TO TAKE PLACE IN SUCH A WAY THAT HONG KONG'S LEGAL, JUDICIAL, SOCIAL AND ECONOMIC SYSTEMS WOULD REMAIN BASICALLY UNCHANGED; THAT HONG KONG WOULD CONTINUE AFTER 1997 TO BE RUN BY HONG KONG PROPLE, NOT BY PEOPLE POSTED FROM THE MAINLAND; AND THAT HONG KONG WOULD REMAIN A CAPITALIST SOCIETY, UNDER THE "ONE COUNTRY, TWO SYSTEMS" CONCEPT, WELL INTO THE NEXT CENTURY.

"BUT TO ENSURE THAT THE PROMISED CONTINUITY ACROSS 1997 WILL MATERIALISE, AND THAT THOSE THINGS WHICH ARE INTENDED TO REMAIN UNCHANGED DO REMAIN UNCHANGED, A GREAT DEAL OF WORK REQUIRES TO BE DONE DURING THE TRANSITION PERIOD TO PUT THE APPROPRIATE IN PLACE.

ARRANGEMENTS

"SOME OF THESE NECESSITATE CHANGES BEING MADE ΤΟ THE STATUS QUO. AT THE SAME TIME, HONG KONG MUST DEVELOP AND CHANGE IN MUCH THE SAME WAY AS ANY LIVING SOCIETY DOES. WE LIVE IN A FAST MOVING WORLD IN WHICH WE OFTEN HAVE TO KEEP RUNNING TO STAND STILL.

/"NO SOCIETY,