XN000022-1995-03-01 — Page 14

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Though this year began on a more pessimistic note, Sir Hamish said: "Our policies must be based on the underlying, long term realities, not the short term vagaries of the market.

"Thus, we must keep firmly in mind the fact that our economic fundamentals are sound, and that we have good reason to expect that we will be able to overcome any difficulties which 1995 and beyond may bring," he added.

Sir Hamish said taken overall, business opportunities for this year appeared to be promising.

Most of Hong Kong's major trading partners are expecting faster rates of growth than for some time. And all this is against a background of increasing support for the removal of barriers to world trade.

End/Wednesday, March 1, 1995

China links key to HK's economic prospects

Economic links with China remain the single most important factor in Hong Kong's economic prospects, the Financial Secretary, the Hon Sir Hamish Macleod, said today (Wednesday) in his Budget Speech.

These links are still expanding into new areas of China, and into different sectors of China's economy, he said.

Last year, Hong Kong's trade with China grew by 15 per cent to $885 billion.

Hong Kong remains the largest external investor in China, with a cumulative realised investment of around US$60 billion.

China is probably the largest external investor in Hong Kong. The positive impact of China's economic growth on Hong Kong has been particularly important for its service sector.

Sir Hamish said the Chinese economy had been set the goal for 1995 of high but sustainable growth, with moderating inflation.