XN000022-1993-02-01 — Page 4

MONDAY, FEBRUARY 1, 1993

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HK MAINTAINS CLOSE BUSINESS TIES WITH CHINA

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THE CURRENT DIFFERENCES BETWEEN BRITAIN AND CHINA OVER THE ARRANGEMENTS FOR ELECTIONS IN HONG KONG IN 1995 IS NATURALLY CAUSING SOME ANXIETIES IN HONG KONG BUT BUSINESS TIES BETWEEN HONG KONG AND CHINA HAVE BEEN LARGELY UNAFFECTED, THE SECRETARY FOR TRADE AND INDUSTRY, MR TH CHAU SAID.

SPEAKING AT A WORKSHOP ON CHINA AND HONG KONG AT THE WORLD ECONOMIC FORUM HELD IN DAVOS, SWITZERLAND TODAY (MONDAY),

MR CHAU SAID AT THE END OF THE DAY ALL PARTIES CONCERNED HAD A COMMON INTEREST IN PROMOTING HONG KONG'S PROSPERITY AND STABILITY.

HE SAID HONG KONG PROVIDED 80 PER CENT OF GUANGDONG'S FOREIGN INVESTMENT, AS WELL AS EMPLOYMENT FOR THREE MILLION PEOPLE AND IT WAS THE SOURCE OF AROUND ONE THIRD OF CHINA'S FOREIGN EXCHANGE EARNINGS.

"AND AT THE SAME TIME, CHINA HAS MASSIVE INVESTMENTS IN HONG KONG, INCLUDING MAJOR HOLDINGS IN MANY HONG KONG COMPANIES," MR CHAU SAID.

"SO HONG KONG AND CHINA HAVE A GREAT STAKE IN EACH OTHER'S SUCCESS, HE SAID.

"THAT SHARED INTEREST HAS SEEN US THROUGH PROBLEMS 50 THE CHALLENGING PROCESS OF HAMMERING OUT THE DETAILS OF HONG TRANSITION FROM BRITISH TO CHINESE SOVEREIGNTY, MR CHAU SAID.

"T

PAR IN KONG'S

"WE ARE CONFIDENT IT WILL CONTINUE TO DO SO. THE YEARS SINCE THE SIGNING OF THE SINO-BRITISH JOINT DECLARATION ON HONG KONG HAVE NOT BEEN EASY ONES.

WE

BUT THE HONG KONG ECONOMY HAS REMAINED REMARKABLY STRONG. ARE LOOKING AT GDP GROWTH OF FIVE PER CENT IN 1992. HONG KONG HAS MOVED UP FROM 18TH TO 10TH PLACE IN THE LEAGUE TABLE OF WORLD TRADERS OVER THE LAST DECADE. OUR EXPORTS SURGED 21 PER CENT IN THE FIRST 11 MONTHS OF 1992. AND OUR PUBLIC ACCOUNTS ARE ROCK SOLID.

LOOKING INTO THE FUTURE, MR CHAU POINTED OUT THAT HONG KONG'S INCREASING ECONOMIC STRENGTH OWED A GREAT DEAL TO ITS RELATIONSHIP WITH CHINA.

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"THAT RELATIONSHIP IS INEXTRICABLE. IT IS GROWING FAST. BUT AND THIS IS AN IMPORTANT POINT ONE OF THE REASONS IT WORKS 80 WELL IS THAT HONG KONG AND CHINA ARE SEPARATE ECONOMIC ENTITIES, DOING THINGS IN THEIR OWN DIFFERENT WAYS.

"THE VALUE OF THAT SEPARATENESS IS CLEARLY RECOGNISED IN THE JOINT DECLARATION, WHICH PROVIDES FOR HONG KONG TO CONTINUE TO BE A SEPARATE CUSTOMS TERRITORY AND TO MAKE TRADE AND ECONOMIC DECISIONS ON OUR OWN.

'IN ESSENCE, HONG KONG WILL BEST RETAIN ITS VITALITY AND DYNAMISM BY REMAINING AN AUTONOMOUS TRADING ENTITY: AND THAT IS WHAT THE JOINT DECLARATION GUARANTEES," MR CHAU SAID.

/HE SAID