XN000022-1992-09-30 — Page 3

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WEDNESDAY, SEPTEMBER 30, 1992

HE EMPHASISED

THAT HONG KONG'S

ECONOMIC STRENGTH, THE PROSPERITY OF SOUTERN CHINA, AND INDEED THE ULTIMATE SUCCESS OF CHINA'S OPEN DOOR POLICY DEPENDED ON HONG KONG CONTINUING TO BE WHAT IT WAS, AS A SPECIAL REGION PRACTISING MATURE CAPITALISM AND COMPLETE MARKET FREEDOM UNDER A WELL DEVELOPED LEGAL SYSTEM WHICH WAS SIMPLY UNATTAINABLE IN CHINA FOR A LONG WHILE.

"INDEED, TOO MUCH OF CHINA IS AT STAKE IN HONG KONG FOR ANYONE IN POWER OR INFLUENCE TO BLUR HONG KONG'S UNIQUE POSITION,' HE SAID.

ELABORATING ON THIS POINT, HE CITED THE EXAMPLE OF OUTWARD PROCESSING ACTIVITIES IN GUANGDONG, WHICH WERE MOSTLY FINANCED OR ARRANGED BY HONG KONG BUSINESSMEN.

"ABOUT THREE MILLION WORKERS IN GUANGDONG ARE BEING EMPLOYED BY HONG KONG RELATED COMPANIES, EITHER THROUGH JOINT VENTURES AND WHOLLY HONG KONG-OWN ENTERPRISES OR IN PROJECTS COMMISSIONED BY HONG KONG COMPANIES IN THE FORM OF OUTWARD PROCESSING ARRANGEMENTS AND COMPENSATION TRADE.

"OUTWARD PROCESSING ACTIVITIES IN CHINA ALLOW HONG KONG COMPANIES TO CONCENTRATE THEIR EFFORTS IN MARKETING AND DEVELOPING MORE CAPITAL INTENSIVE AND HIGHER TECHNOLOGY PROCESSING IN AND TO MOVE UP MARKET," HE SAID.

STATISTICS SHOWED OUTWARD PROCESSING ACTIVITIES IN FUELLED THE GROWTH IN HONG KONG'S RE-EXPORT TRADE.

YEARS,

HONG KONG

CHINA HAD

RE-EXPORTS

DURING THE PAST FIVE

HONG KONG'S

TO THE WORLD INCREASED BY AN AVERAGE ANNUAL GROWTH OF 34 PER CENT WHEREAS THOSE TO CHINA INCREASED BY 30 PER CENT.

IN 1991, ABOUT 86 PER CENT OF GOODS RE-EXPORTED THROUGH HONG KONG WERE DESTINED FOR, OR ORIGINATED IN CHINA. THEY WERE VALUED AT C$67 BILLION AND REPRESENTED 29 PER CENT OF HONG KONG'S TOTAL TRADE.

MR TSANG TOLD THE SEMINAR THAT HONG KONG MAINTAINED ITS OWN WELL-ESTABLISHED AND PROPERLY-ENFORCED SET OF RULES AND PRACTICES GOVERNING PRODUCT ORIGIN, TEXTILE QUOTAS, TRADE STANDARDS, LABELLING AND ORIGIN MARKING,

THE TRADE DEPARTMENT ADMINISTERED A COMPREHENSIVE SCHEME FOR OUTWARD PROCESSING ARRANGEMENTS AND THIS SPECIFIED CLEARLY THE CIRCUMSTANCES AND EXTENT WHEREBY LOCAL MANUFACTURERS COULD SUB-CONTRACT SUBSIDIARY MANUFACTURING PROCESSES OUTSIDE HONG KONG.

IF A COMPANY WISHED TO USE A HONG KONG ORIGIN LABEL OR то APPLY FOR A CERTIFICATE OF HONG KONG ORIGIN, IT MUST BE ABLE TO MEET OUR ORIGIN CONFERRING CRITERIA. ALL THESE WERE SUBJECT ΤΟ CLOSE SURVEILLANCE BY THE CUSTOMS AND EXCISE DEPARTMENT.

MR TSANG FIRMLY BELIEVED THAT THE GROWING ECONOMIC BETWEEN HONG KONG AND GUANGDONG WOULD NOT MALPRACTICES.

NECESSARILY

INTEGRATION

GENERATE MORE

/"ON THE