XN000022-1994-06-14 — Page 2

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TUESDAY, JUNE 14, 1994

THE

HK PERFORMS IMPORTANT ROLE IN CHINA'S ECONOMIC DEVELOPMENT

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HONG KONG IS PERFORMING A VERY IMPORTANT INTERMEDIARY ROLE IN TRADE AND ECONOMIC DEVELOPMENT OF CHINA, SECRETARY FOR TRADE AND INDUSTRY, MR TH CHAU, SAID TODAY (TUESDAY).

MR CHAU WAS SPEAKING IN BEIJING AT A CONFERENCE ON "TRADE AND ECONOMIC CO-OPERATION BETWEEN HONG KONG AND INLAND AND NORTHERN CHINA" ORGANISED BY THE CHINESE MANUFACTURERS' ASSOCIATION OF HONG KONG AND THE ALL-CHINA FEDERATION OF INDUSTRY AND COMMERCE.

MR CHAU SAID HONG KONG BUSINESSMEN HAD BECOME THE BEST JOINT- VENTURE PARTNERS OF FOREIGN INVESTORS IN CHINA AS THE TERRITORY WAS RECOGNISED AS A GATEWAY TO CHINA.

THIS WAS DUE TO THE FACT THAT HONG KONG IS IN CLOSE PROXIMITY TO CHINA, AND THAT MORE THAN 98 PER CENT OF HONG KONG'S POPULATION ARE OF CHINESE ORIGIN WHO CAN BETTER UNDERSTAND PEOPLE IN CHINA.

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ALSO, HONG KONG'S CAPITALIST FREE TRADE SYSTEM HAS ENABLED BECOME A SOURCE OF THE FOREIGN INVESTMENTS AND SERVICES SUPPORT NECESSARY FOR CHINA'S ECONOMIC DEVELOPMENT.

"SINCE THE LATE 80S, HONG KONG HAS BEEN CHINA'S LARGEST SOURCE THE TERRITORY IS A CATALYST TO CHINA'S

OF FOREIGN INVESTMENT.

ECONOMIC DEVELOPMENT, MR CHAU SAID.

"CO-OPERATION BETWEEN THE TWO PLACES STARTED IN SOUTH CHINA AND LATER INVESTMENTS GRADUALLY MOVED UP TO THE NORTHERN PART OF CHINA. IN RECENT YEARS, HONG KONG BUSINESSMEN HAVE MADE INVESTMENT IN TRANSPORT AND OTHER INFRASTRUCTURAL PROJECTS, THE COMPLETION OF WHICH WOULD BE CONDUCIVE TO THE ECONOMIC DEVELOPMENT OF THE REMOTER PARTS OF CHINA.

"TO OVERSEAS INVESTORS AND TRADERS, HONG KONG IS LIKE AN ENCYCLOPEDIA ON CHINA. IT HELPS TO SETTLE CONTRACT DISPUTES AND RECONCILE CULTURAL DIFFERENCES IN ASPECTS RELATING то TRADE TRANSACTIONS AND AGREEMENTS.

"THE ROLE PLAYED BY HONG KONG DOES NOT END THERE AS THE TERRITORY IS ALSO THE MAJOR ENTREPOT FOR CHINA'S IMPORTS AND EXPORTS AND THIS ROLE HAS NOT BEEN AFFECTED BY CHINA'S DIRECT AND CLOSE TRADE RELATIONS WITH OTHER PLACES.

"AT PRESENT, HONG KONG TAKES UP ABOUT 40 PER CENT OF CHINA'S TOTAL TRADE VOLUME AND ABOUT ONE-THIRD OF THE TERRITORY'S EXTERNAL TRADE INVOLVES CHINA."

HONG KONG STANDS TO BENEFIT IF CHINA'S ECONOMY PROS PERS ANYTHING WHICH HELPS HONG KONG'S ECONOMY HAS A POSITIVE EFFECT CHINA TO0, MR CHAU SAID.

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