XN000022-1991-11-19 — Page 4

TUESDAY, NOVEMPER 19, 1991

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SIR DAVID SAID THE INDUSTRIAL TRANSFORMATION OF CHINA'S COASTAL PROVINCES WOULD INCREASE THE DEMAND FOR HONG KONG'S CAPITAL, SERVICES .. AND ENTREPRENEURIAL SKILLS.

"THE ECONOMIC MOMENTUM WHICH IS BUILDING UP NOW WILL GO A LONG TO CARRYING US THROUGH THE TRANSFER OF SOVEREIGNTY IN

咖 1997, HE

WAY SAID.

ON THE

RETURN TO CHINA OF SOVEREIGNTY OVER HONG KONG, THE GOVERNOR SAID IN MANAGING THE TRANSITION, WHICH WAS A CAREFULLY PLANNED ONE, A GREAT DEAL HAD BEEN ACHIEVED, BUT MUCH REMAINED TO BE DONE.

'THERE ARE, FOR EXAMPLE, MANY INTERNATIONAL AGREEMENTS WHICH AFFECT HONG KONG'S RELATIONSHIP WITH THE INTERNATIONAL COMMUNITY.

"EACH ONE MUST BE LOOKED AT TO SEE HOW IT CONTINUES TO BE EFFECTIVE AFTER 1997 WHEN THE HONG KONG SAR (SPECIAL ADMINISTRATIVE REGION) IS A PART OF CHINA.

"FOR EXAMPLE, HONG KONG'S CONTINUING SEPARATE MEMBERSHIP OF THE GATT IS NOW ACCEPTED BY ALL PARTIES. BUT OTHER ISSUES REMAIN, SUCH AS OUR AIR SERVICES AGREEMENTS," HE SAID.

EACH AGREEMENT, SIR DAVID SAID, HAD TO BE SEPARATED FROM THE ARRANGEMENT ORIGINALLY MADE UNDER THE U.K. UMBRELLA.

EACH ONE, SO THAT IT COULD CONTINUE THROUGH 1997, HAD TO HAVE THE BLESSING OF THE CHINESE GOVERNMENT, HE SAID.

SIR DAVID SAID HE WOULD NOT PRETEND THAT THE PROCESS OF DISCUSSION WITH CHINA WAS ALWAYS EASY.

"THERE HAVE BEEN DIFFERENCES BETWEEN US. IT WOULD BE ODD IF THIS WAS NOT SO.

"WE HAVE COMMON INTERESTS BUT COME TO THEM FROM DIFFERENT BACKGROUNDS, THE GOVERNOR SAID.

II

HE POINTED OUT THAT THE NEGOTIATIONS OVER HONG KONG'S NEW AIRPORT WERE A MAJOR TEST OF HONG KONG'S RELATIONSHIP WITH CHINA, AND OF HONG KONG'S PLANNING FOR THE FUTURE.

"THE AGREEMENT THAT WE FINALLY REACHED FORMALISED BY THE SIGNING OF A MEMORANDUM OF UNDERSTANDING BY THE CHINESE AND BRITISH PRIME MINISTERS IN PEKING IN SEPTEMBER IS A CLEAR DEMONSTRATION THAT EVEN THE MOST DIFFICULT PROBLEMS CAN BE RESOLVED WITHIN THE FRAMEWORK OF THE JOINT DECLARATION.

INTO

"IT IS ALSO AN EXAMPLE OF HOW MUCH EFFORT WE ARE PUTTING LAYING THE FOUNDATIONS FOR THE NEXT STAGE OF HONG KONG'S DEVELOPMENT, THE GOVERNOR SAID.

SIR DAVID SAID OVER THE NEXT FIVE AND A HALF YEARS, PEOPLE WOULD HEAR MORE FROM THE PESSIMISTS.

/HOWEVER, HE