XN000022-1991-09-28 — Page 2

SATURDAY, SEPTEMBER 28, 1991

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HK: A STRATEGIC BASE FOR INDUSTRY AND COMMERCE

THE RECENTLY SIGNED MEMORANDUM OF UNDERSTANDING ON THE NEW AIRPORT PROJECT FOR HONG KONG HAS SPURRED RENEWED CONFIDENCE IN THE TERRITORY, THE DIRECTOR-GENERAL OF INDUSTRY, MR T.H. BARMA, YESTERDAY (FRIDAY, U.S. TIME).

SAID

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A

STRATEGIC BASE ASSOCIATION OF EMBARK ON THE

IN A SPEECH IN CHICAGO ENTITLED "HONG KONG FOR INDUSTRY AND COMMERCE" TO THE HONG KONG BUSINESS THE MID-WEST, MR BARMA SAID HONG KONG WOULD SOON LARGEST INFRASTRUCTURAL DEVELOPMENT IN THE TERRITORY'S HISTORY.

"BEFORE THE END OF THIS YEAR, THE GOVERNMENT WILL INVITE TENDERS FOR DESIGN CONSULTANCIES, CIVIL ENGINEERING AND HIGHWAYS PROJECTS FOR THE PREPARATION OF THE AIRPORT SITE; ROADS AND BRIDGES TO LINK THE NEW FACILITY WITH THE METROPOLITAN AREA; AND PORT WORKS.

"THERE HAS BEEN GREAT OVERSEAS INTEREST IN THIS VAST PROGRAMME, AND WE EXPECT THE PROJECT то HAVE SIGNIFICANT INTERNATIONAL INVOLVEMENT," HE SAID.

ON OVERSEAS INVESTMENT IN HONG KONG, MR BARMA SAID WITH ITS STRATEGIC REGIONAL LOCATION, FREE MOVEMENT OF CAPITAL, LOW AND STABLE TAX REGIME, EFFICIENT AND RELIABLE FINANCIAL AND COMMUNICATIONS SYSTEMS, HONG KONG HAD FOR MANY YEARS ATTRACTED THE INTERNATIONAL INVESTOR.

"THE GOVERNMENT HAS ALSO PLAYED ITS PART: A POLICY OF MINIMUM RED TAPE, NO DISCRIMINATION BETWEEN OVERSEAS AND LOCAL INVESTORS, AND A CONSISTENT PRO-BUSINESS APPROACH, HE SAID.

HE SAID THERE HAD BEEN A NUMBER OF SIGNIFICANT NEW PROJECTS IN HONG KONG, AND A NUMBER OF EXISTING FACILITIES HAD BEEN EXPANDED.

QUOTING SOME EXAMPLES, MR BARMA SAID:

"MOTOROLA, WHICH OF COURSE IS A MAJOR MID-WEST CORPORATION, HAS SET UP A

A MULTI-MILLION DOLLAR FACILITY IN HONG KONG TO SERVE AS

its ASIA-PACIFIC HEADQUARTERS, AND ALSO TO ACCOMMODATE ITS DESIGN AND MANUFACTURING CENTRE FOR SEMI-CONDUCTORS AND APPLICATION-SPECIFIC CIRCUITS.

INTEGRATED

"DOW CHEMICAL OF MICHIGAN RECENTLY INCREASED THE CAPACITY of ITS POLYSTYRENE POLYMERISATION PLANT WHICH IS NOW THE LARGEST KIND IN ASIA.

OF ITS

"THE PENNSYLVANIA COMPANY, ARCO, WHICH PRODUCES ENERGY, oft AND PETROCHEMICAL INTERMEDIARIES, RECENTLY SET UP ITS REGIONAL HEADQUARTERS IN HONG KONG,

"CABOT PLASTICS OF MASSACHUSETTS HAS ALSO RECENTLY SET UP A RESIN COMPOUNDING FACILITY IN HONG KONG AND IS NOW EMBARKED ON AN EXPANSION PROGRAMME.

/"PAN-PACIFIC TRADING