XN000022-1992-05-04 — Page 7

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MONDAY, MAY 4, 1992

"IN ADDITION, A NUMBER OF ECONOMIES, WHICH USED TO HAVE HEAVILY CONTROLLED FINANCIAL SECTORS, ARE EMBARKING ON FINANCIAL LIBERALISATION TO COPE WITH THE UPSURGE IN FINANCIAL ACTIVITY WHICH ACCOMPANIES ECONOMIC GROWTH.

"THERE HAS ALSO BEEN A GROWING RECOGNITION OF THE IMPORTANCE OF MARKET FORCES IN ENHANCING THE EFFICIENCY OF THE FINANCIAL SECTOR, HE NOTED.

"WHILST THE EXTENT AND PACE OF LIBERALISATION DIFFERS, THE PROCESS HAS USUALLY TAKEN THE FORM OF RELAXING CROSS-BORDER FLOWS, ALLOWING FOREIGN ACCESS TO DOMESTIC FINANCIAL MARKETS AND STIMULATING COMPETITION AMONG FINANCIAL INSTITUTIONS.

HAS

"NOTWITHSTANDING THE REMARKABLE ECONOMIC PERFORMANCE WHICH TAKEN PLACE IN THE REGION, I MUST ADD THE CAVEAT THAT PAST ACHIEVEMENT CANNOT ALWAYS GUARANTEE FUTURE SUCCESS. WE SHOULD THEREFORE CONTINUE TO IMPROVE UPON THE REGION'S ECONOMIC PERFORMANCE, HE SAID.

HE POINTED OUT THAT CHINA'S COMMITMENT TO AN OPEN-DOOR ECONOMIC POLICY WILL CONTINUE TO OFFER VALUABLE OPPORTUNITIES FOR BENEFICIAL CO-OPERATION IN THE AREAS OF TRADE, INVESTMENT, FINANCE AND TECHNOLOGY TRANSFER.

IN

"THE MARKET-ORIENTED REFORMS WHICH ARE BEING PURSUED COUNTRIES IN INDO-CHINA AND THE INDIAN SUB-CONTINENT ALSO OFFER PROMISING PROSPECTS FOR THE REST OF THE REGION, MR MACLEOD SAID.

"FURTHERMORE, THE AMBITIOUS INFRASTRUCTURAL DEVELOPMENT UNDER WAY IN CERTAIN PARTS OF THE REGION FOR EXAMPLE, THE PORT AND AIRPORT DEVELOPMENT PROGRAMME IN HONG KONG AND THE MAJOR INFRASTRUCTURAL PROJECTS IN THAILAND AND TAIPEI - WILL ACT AS A MAGNET FOR FOREIGN INVESTMENT.

"IN

SHORT, THE GROWTH MOMENTUM OF THE REGION IS STRONG. SUSTAINED ECONOMIC GROWTH WILL DEPEND ON OUR CONTINUED COMMITMENT MAINTAINING A STABLE MACRO-ECONOMIC ENVIRONMENT AND EFFICIENCY RESOURCE ALLOCATIONS, HE STRESSED.

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BUT

TO

IN

RIGHT INFRASTRUCTURE NEEDED TO SUPPORT ECONOMIC GROWTH

* * *

HONG KONG'S INTENTION IS TO PROVIDE THE RIGHT INFRASTRUCTURE TO SUPPORT THE ECONOMIC GROWTH THAT IS VITAL TO ITS FUTURE, THE SECRETARY FOR ECONOMIC SERVICES, MRS ANSON CHAN, SAID TODAY (MONDAY).

THE INFRASTRUCTURE HAD TO BE ABLE TO COPE WITH DEMAND IF HONG KONG WAS TO MAINTAIN ITS COMPETITIVE EDGE AND ITS POSITION AS A MAJOR REGIONAL CENTRE FOR TRANSPORTATION, COMMUNICATIONS, FINANCE AND SERVICES.

OTHER

/MRS CHAN