XN000022-1992-05-04 — Page 3

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MONDAY, MAY 4, 1992

THE GOVERNOR TOLD THE DELEGATES THAT THE KEY TO UNDERSTANDING THE CONFIDENCE OF HONG KONG PEOPLE IN THE FUTURE WAS TO APPRECIATE THE STRENGTH OF THE ECONOMY AND WHAT GAVE IT THE POTENTIAL FOR CONTINUING STRENGTH.

HE POINTED OUT THAT LIKE MANY OF THE NEIGHBOURING COUNTRIES IN ASIA, HONG KONG'S ECONOMIC SUCCESS IN THE PAST 40 YEARS WAS BASED ON TRADE WITH EUROPE AND NORTH AMERICA.

HE SAID WHILE THESE MARKETS REMAINED IMPORTANT TO HONG KONG,

IT WAS TRADE WITH THE NEIGHBOURS IN ASIA WHICH WAS NOW GIVING HONG KONG'S ECONOMY ITS DYNAMISM.

CHINA.

ON TRADE WITH ASIA, THE GOVERNOR STRESSED THE IMPORTANCE OF

"THERE CAN BE NO DOUBT THAT HONG KONG'S FUTURE ECONOMIC SUCCESS IS INEXTRICABLY LINKED WITH THAT OF CHINA ESPECIALLY SOUTHERN CHINA

AND IN PARTICULAR WITH GUANGDONG PROVINCE.

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"GUANGDONG IS RAPIDLY EMERGING AS A MAJOR ECONOMIC FORCE. IT IS ON TARGET TO BECOME ONE OF THE WORLD'S MAJOR MANUFACTURING CENTRES EARLY IN THE NEXT CENTURY, THE GOVERNOR SAID.

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CITING FIGURES ΤΟ ILLUSTRATE THE RAPIDLY DEVELOPING LINKS BETWEEN HONG KONG AND CHINA, THE GOVERNOR POINTED OUT THAT MUCH OF HONG KONG'S MANUFACTURING BASE HAD MOVED TO GUANGDONG AND HONG KONG'S ECONOMY WAS NOW TO A LARGE EXTENT SERVICE BASED.

"ABOUT 65% OF OUR WORKFORCE IS EMPLOYED IN SERVICE INDUSTRIES. OUR FUTURE PROSPERITY DEPENDS UPON OUR ABILITY TO ACT AS AN EFFECTIVE LINK BETWEEN THE BURGEONING ECONOMY OF SOUTHERN CHINA AND BOTH THE ASIA REGION AND THE REST OF THE WORLD, THE GOVERNOR SAID.

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LORD WILSON REASSURED THAT 1997 WOULD NOT WEAKEN HONG KONG'S TRADE POSITION.

"IT WILL ENHANCE IT. THE STRONG ECONOMIC LINKS BETWEEN HONG KONG AND CHINA WILL CONTINUE TO GROW.

"THE INDUSTRIAL TRANSFORMATION OF CHINA'S COASTAL PROVINCES WILL MEAN A CONTINUING AND INCREASING DEMAND FOR HONG KONG'S CAPITAL, SERVICES AND ENTREPRENEURIAL SKILLS, THE GOVERNOR SAID.

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GOVT READY TO DISCUSS WITH CHINA ON ACP FINANCING

THE

THE GOVERNMENT IS READY AT ANY TIME TO DISCUSS WITH CHINESE SIDE PROPOSALS ON THE FINANCING OF THE AIRPORT CORE PROGRAMME, THE FINANCIAL SECRETARY, MR HAMISH MACLEOD, SAID TODAY (MONDAY).

SPEAKING TO REPORTERS AFTER THE OPENING OF THE 25TH ANNUAL MEETING OF THE BOARD OF GOVERNORS OF THE ASIAN DEVELOPMENT BANK, MR MACLEOD POINTED OUT THAT THE ISSUES WERE COMPLEX AND IT WAS NOT UNREASONABLE THAT THE CHINESE WOULD NEED TO ABSORB IT.

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