XN000022-1994-04-14 — Page 6

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THURSDAY, A PRIL 14, 1994

FAR FROM BEING WEAKENED, THE PRINCIPLES EMBODIED IN THE JOINT DECLARATION HAVE IN FACT EMERGED FROM TEN TESTING YEARS SOLID AND INTACT. DURING THOSE YEARS, THERE HAVE BEEN THOSE WHO SAID THAT, BY NOW, HONG KONG WOULD BE ON ITS KNEES: THAT CONFIDENCE IN THE FUTURE WOULD HAVE EVAPORATED, INVESTORS WOULD HAVE TAKEN THEMSELVES AND THEIR MONEY TO SINGAPORE OR SHANGHAI, OUR FUTURE TALENT

INCLUDING THE BRIGHTEST GRADUATES OF THIS UNIVERSITY EMIGRATED TO CANADA OR AUSTRALIA,

HAS IT HAPPENED? ASK THE FINANCIAL SECRETARY. ANOTHER YEAR OF OVER FIVE PERCENT GROWTH, THE 28TH YEAR OF GROWTH RUNNING. MAKING POSSIBLE ANOTHER BUDGET WHICH CUT TAXES, RAISED SPENDING, AND INCREASED OUR RESERVES. VIOLENT CRIME FALLING, WHEN THE GLOOMY MEN WITH SANDWICH BOARDS PREDICTED THAT IT WOULD GO THROUGH THE CEILING. I THINK THE JOINT DECLARATION HAS SO FAR DONE A PRETTY GOOD JOB OF PRESERVING HONG KONG'S STABILITY AND PROSPERITY.

AND

IS

OF COURSE, THAT DOES NOT MEAN THAT WE CAN SIT BACK CONGRATULATE OURSELVES. THE REAL TEST IS JUST BEGINNING. THERE STILL AN AWFUL LOT TO DO BEFORE 1997; AND THAT WILL ONLY TAKE US TO THE END OF THE FIRST CHAPTER; THE REST OF THE BOOK WILL ВЕ WRITTEN THEREAFTER.

IT IS FOR THOSE SUBSEQUENT CHAPTERS THAT WE MUST AND ARR PLANNING. LET ME SAY IN PASSING THAT WE WILL BE GREATLY HELPED IN THAT TASK BY THE THOROUGH AND THOUGHTFUL REPORT PUBLISHED YESTERDAY BY THE HOUSE OF COMMONS FOREIGN AFFAIRS COMMITTEE. I RECOMMEND IT AS REQUIRED READING FOR ANYONE WITH AN INTEREST IN OUR AFFAIRS. THE COMMITTEE TOOK DETAILED EVIDENCE FROM ALL PARTIES INVOLVED, INCLUDING THE BRITISH AND CHINESE GOVERNMENTS, AS WELL, OF COURSE, AS HERB IN HONG KONG. I AM DELIGHTED THAT THE SECTION ON HONG KONG FIRMLY ENDORSES THE APPROACH WE THE BRITISH GOVERNMENT AND THE HONG KONG GOVERNMENT

YEARS; HAVE TAKEN OVER THE LAST COUPLE OF

PARTICULARLY DELIGHTED AS THE REPORT IS UNANIMOUS AND CROSS-PARTY. I KNOW THAT THE BRITISH GOVERNMENT WITH THE HONG KONG GOVERNMENT WILL CONSIDER VERY CAREFULLY AND FULLY THE RECOMMENDATIONS WHICH THE COMMITTEE MAKE.

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LET ME SAY A WORD OR TWO, THOUGH, ABOUT THE KIND OF PRIORITIES WHICH I BELIEVE WE SHOULD NOW BE SETTING OURSELVES.

TO START WITH, WE NEED TO DO FAR MORE TO ENSURE THE CONTINUITY OF OUR LAWS, AND OF OUR LEGAL SYSTEM. HONG KONG OWES SO MUCH TO ITS LAWS AND TO THE RULE OF LAW, IN WHICH THE FREEDOMS AND WAY OF LIFE GUARANTEED IN THE JOINT DECLARATION ARE EMBEDDED AND BEFORE WHICH ALL CITIZENS ARE EQUAL. IT IS THANKS TO THE CERTAINTY AND STABILITY PROVIDED BY OUR LEGAL SYSTEM THAT HONG KONG HAS PROSPERED AS A PLACE OF INTERNATIONAL TRADE AND FINANCE. THERE ARE CURRENTLY NEARLY 700 US COMPANIES, TO TAKE ONE EXAMPLE, ESTABLISHED IN HONG KONG; 62 MORE CAME HERE IN 1993. WHY? HONG KONG IS AFTER ALL NOT THE ONLY POINT OF ACCESS TO THE GROWING MARKETS OF EAST ASIA. COMPANIES ARE COMING HERE BECAUSE WE CAN OFFER, MORE THAN ANYWHERE ELSE, A LEVEL PLAYING FIELD KEPT LEVEL BY FAIR LAWS EFFECTIVELY AND IMPARTIALLY ENFORCED.

/WE NEED