XN000022-1991-05-16 — Page 8

THURSDAY, MAY 16, 1991

IN TERMS OF REAL POLITICS, 1997 IS NOT GOING TO MAKE A GREAT DEAL OF DIFFERENCE.

"HONG KONG WOULD REMAIN FREE ΤΟ PURSUE ITS OWN ECONOMIC, SOCIAL AND FISCAL POLICIES," HE SAID.

**

ON ECONOMIC INTERDEPENDENCE BETWEEN HONG KONG AND CHINA, MR YAXLEY SAID THEY WERE EACH OTHER'S LARGEST TRADE PARTNERS.

HONG KONG WAS THE MOST IMPORTANT SOURCE OF EXTERNAL

IN CHINA.

IT WAS ALSO GENERALLY ESTIMATED THAT HONG KONG WAS OF 30-40 PER CENT OF CHINA'S FOREIGN EXCHANGE EARNINGS.

THERE WAS ALSO INVESTMENT INTO HONG KONG FROM CHINA.

INVESTMENT

THE SOURCE

INVESTORS

AT THE END OF 1989, CHINA RANKED THIRD AMONG FOREIGN IN HONG KONG'S MANUFACTURING INDUSTRY, AFTER USA AND JAPAN, WITH AN INVESTMENT OF SOME US$300 MILLION.

"ALL IN ALL, THE ECONOMIC RELATIONSHIP BETWEEN HONG KONG AND CHINA IS FLOURISHING AND IS VERY GOOD NEWS FOR OUR FUTURE PROSPERITY. SOUTHERN CHINA IS INDEED OUR NATURAL HINTERLAND, MR YAXLEY SAID.

THE SECOND DIMENSION TO HONG KONG'S TRADE WAS HONG KONG'S ROLE AS THE REGIONAL CENTRE FOR ASIA PACIFIC. HONG KONG DEFINED THE REGION TO INCLUDE APART FROM CHINA AND HONG KONG, JAPAN, SOUTH KOREA, AND TAIWAN, THE SIX ASEAN COUNTRIES, AUSTRALIA AND NEW ZEALAND.

T

'INDEED, HONG KONG HAS BECOME A PLACE FOR COMPANIES TO SET UP THEIR REGIONAL HEADQUARTERS,

..

HE NOTED.

OF OVER 2,000 INTERNATIONAL COMPANIES OPERATING IN HONG KONG, NEARLY 600 OF THOSE ARE REGIONAL HEADQUARTERS.

PART

"OF THESE 600, HALF ARE ENGAGED IN TRADING. DESPITE BEING OF THE REGION THEMSELVES, 20 JAPANESE COMPANIES USE HONG KONG AS A BASE FOR REGIONAL HEADQUARTERS," HE SAID.

THIRDLY, HONG KONG WAS A MAJOR INTERNATIONAL FINANCIAL ALTOGETHER THERE WERE 138 FOREIGN BANKS LICENSED IN HONG WHICH 77 ARE RANKED AMONG THE WORLD'S TOP 100.

CENTRE. KONG

OF

BE IT

"BUT FOR ALL THE GROWTH IN HONG KONG'S SERVICE SECTORS, IN THE FINANCIAL MARKETS OR IN TOURISM, MANUFACTURING AND DOMESTIC EXPORTS ARE STILL THE DRIVING FORCE OF THE HONG KONG ECONOMY.

"ANY CONSIDERATION OF HONG KONG'S ECONOMIC GROWTH PROSPECTS MUST START WITH WORLD TRADE IN GENERAL AND HONG KONG'S MARKETS IN PARTICULAR, MR YAXLEY SAID.

T

"FOR THE REST OF THE DECADE, HONG KONG WILL, AS ALWAYS, AFFECTED BY WHAT GOES ON ELSEWHERE IN THE URUGUAY ROUND.

BE

WORLD,

INCLUDING

THE

/"I WILL