XN000022-1993-01-21 — Page 3

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THURSDAY, JANUARY 21, 1993

YAXLEY TELLS SWEDES OF INVESTMENT OPPORTUNITIES

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ECONOMIC

SWEDISH BUSINESSMEN WERE TOLD OF ASIA'S DYNAMIC GROWTH AND THE OPPORTUNITIES HONG KONG OFFERED TO INVESTORS HONG KONG COMMISSIONER IN LONDON, MR JOHN YAXLEY, BUSINESSMEN, INDUSTRIALISTS AND BANKERS IN STOCKHOLM TODAY (THURSDAY).

WHEN THE ADDRESSED

SPEAKING AT AN ASIA-PACIFIC SEMINAR ORGANISED BY THE HONG KONG TRADE DEVELOPMENT COUNCIL, MR YAXLEY SAID THERE WAS MUCH ROOM FOR FURTHERING BILATERAL TRADE BETWEEN SWEDEN AND HONG KONG.

SWEDISH-HONG KONG TRADE DURING THE FIRST 10 MONTHS OF LAST YEAR INCREASED 25% COMPARED WITH THE SAME PERIOD IN 1991.

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BETWEEN 1981 AND 1991 IMPORTS FROM SWEDEN INTO HONG KONG, MAINLY MECHANICAL GOODS, INCREASED AT AN ANNUAL AVERAGE OF 15%, WHILE APPAREL AND CLOTHING ACCESSSORIES MADE UP 72% OF HONG KONG'S DOMESTIC EXPORTS TO SWEDEN IN 1991.

MR YAXLEY SAID HONG KONG HAD A MAJOR ROLE TO PLAY IN THE OPENING UP OF CHINA, WHOSE ECONOMY WAS GROWING DRAMATICALLY; HONG KONG IS THE WORLD'S GATEWAY TO CHINA.

"IN THE FIRST HALF OF 1992, CHINA'S INDUSTRIAL OUTPUT GREW BY 18% AND GDP BY 11%. THE COMPARABLE FIGURES FOR GUANGDONG WERE MUCH HIGHER AT 27% AND 13% RESPECTIVELY

THE CHINESE ECONOMY IS EXPECTED TO GROW BY 8% TO 9% ANNUALLY OVER THE NEXT DECADE, HE ADDED.

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IN THE LAST FIVE YEARS HONG KONG'S TRADE WITH CHINA INCREASED ON AVERAGE 30% A YEAR. IN THE FIRST HALF OF 1992 THAT TRADE WAS VALUED AT HK$285 BILLION.

STRATEGICALLY SITUATED WITHIN THE ASIA PACIFIC REGION WHOSE ECONOMY GREW AT 6% LAST YEAR, HONG KONG IS WELL PLACED ΤΟ BENEFIT FROM THE MOST RAPIDLY INDUSTRIAL REVOLUTION THE WORLD HAS EVER SEEN, HE SAID.

"AS A RECENT OECD (ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT) REPORT PUTS IT, THE FOCUS OF WORLD ECONOMIC POWER WILL SHIFT INEXORABLY AWAY FROM WESTERN EUROPE AND NORTH AMERICA TOWARDS THE FAR EAST OVER THE NEXT HALF CENTURY. AT THE MOMENT THE REGION ACCOUNTS FOR ABOUT ONE QUARTER OF WORLD OUTPUT. BY 2010 IT WILL BE ONE THIRD AND ON ONE OECD PROJECTION WILL BE HALF BY 2040.

IT IS AGAINST THIS PROMISING ECONOMIC BACKGROUND OF EAST ASIA AND CHINA THAT HONG KONG LAUNCHED A MASSIVE INFRASTRUCTURAL PROJECT THE CONSTRUCTION OF A NEW AIRPORT, SAID MR YAXLEY.

"WE HAVE ALREADY LET CONTRACTS VALUED AT OVER $30 BILLION OR ABOUT ONE THIRD OF THE TOTAL VALUE OF THE PROJECT."

/ON HONG