XN000022-1994-10-14 — Page 3

FRIDAY, OCTOBER 14, 1994

GOVERNOR GIVES LUNCHEON SPEECH

FOLLOWING IS A TRANSCRIPT OF THE SPEECH BY THE GOVERNOR, THE RT HON CHRISTOPHER PATTEN, AT THE JOINT LUNCHEON OF THE HONG KONG GENERAL CHAMBER OF COMMERCE AND THE FEDERATION OF HONG KONG INDUSTRIES TODAY (FRIDAY):

WILLIAM, RAYMOND, LADIES AND GENTLEMEN,

MY

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IT'S ALMOST EXACTLY TWO YEARS SINCE I SPOKE TO YOU AFTER FIRST LEGCO SPEECH. IT CERTAINLY HASN'T BEEN AN UNEVENTFUL PERIOD. RATHER WISH IT HAD BEEN. THERE'S NOTHING. I'D HAVE LIKED MORE THAN QUIET LIFE. BUT WHAT HAS ACTUALLY HAPPENED HERE IN HONG KONG DURING THAT PERIOD? HOW HAVE YOU ALL DONE? IS HONG KONG STILL A GOOD PLACE TO DO BUSINESS? OR HAS IT TURNED INTO A WELFARE STATE ON THE ROAD TO BANKRUPTCY, UNFRIENDLY TO BUSINESS, OVER-REGULATED, OVER-TAXED, RIVEN BY SOCIAL DISORDER AS PEOPLE ASSUME THE LIMITED POLITICAL RESPONSIBILITIES THAT THEY HAVE LONG BEEN PROMISED?

PERHAPS YOU'LL ALLOW ME BRIEFLY TO REVIEW WHAT'S HAPPENED IN HONG KONG. THEN TO GIVE YOU MY FOUR PRIORITIES FOR THE LAST 990 DAYS OR SO OF BRITISH ADMINISTRATION.

FIRST

WHAT'S ACTUALLY HAPPENED?

LET'S FOLLOW THAT OLD CHINESE PRECEPT "TO SEEK TRUTH FROM FACTS", HAS BUSINESS HAD A ROUGH, TOUGH TIME IN THE LAST COUPLE OF YEARS?

FACT

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HONG KONG TODAY IS UP FROM THE 10TH TO THE 8TH TRADING ENTITY IN THE WORLD IF YOUR COUNT THE EUROPEAN UNION AS ONE, WE'RE THE FIFTH LARGEST TRADING COMMUNITY.

LARGEST

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FACT

YEAR. OUR ECONOMY GREW BY 5.5 PER CENT LAST

AND SHOULD HIT 5.7 PER CENT THIS YEAR. THAT WILL BE OUR 34TH SUCCESSIVE YEAR OF GROWTH.

FACT - OUR STOCK MARKET IS UP FROM ABOUT 5,500 TO OVER 9,000. ITS CAPITALISATION HAS RISEN FROM ABOUT $1,300 BILLION TO OVER $2,500 BILLION. IT'S GONE UP TO THE 7TH LARGEST MARKET IN THE WORLD.

AND TAKE THE POSITION OF INDIVIDUAL COMPANIES. THE NET CORPORATE PROFITS OF THE TOP FIVE LISTED COMPANIES WERE 50 PER CENT HIGHER LAST YEAR THAN THE YEAR BEFORE, AND PROFITS ARE ALMOST DOUBLE THE FIGURE FOR THE YEAR BEFORE THAT. THE SHARE PRICES OF THOSE COMPANIES HAVE SOARED, TOO. IN ONE CASE, THE SHARE PRICE HAS MORE THAN DOUBLED IN TWO YEARS. IN TWO CASES, IT'S ALMOST DOUBLED. THE OTHER TWO COMPANIES HAVE REGISTERED HANDSOME ADVANCES.

AND

1992.

IN

ANOTHER FACT OUR PER CAPITA GDP IS UP 7.5 PER CENT ON IT'S NOW HIGHER THAN THE UNITED KINGDOM OR AUSTRALIA: THE HIGHEST ASIA AFTER JAPAN AND BRUNEI.

SO WHAT DOES THE REST OF THE WORLD THINK ABOUT DOING BUSINESS HERE. DO OTHERS RUN A MILE? WELL, MAYBE SLIGHTLY MORE THAN A MILE BUT WHEN THEY RUN, IT'S IN OUR DIRECTION.

THERE ARE