XN000022-1995-04-25 — Page 7

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"I'm sure that hard-nosed businessmen like yourselves will not fail to make the most of these opportunities," she added.

During her speech to 140 business and political leaders, the Chief Secretary touched on some of the problems Hong Kong was encountering in dealing with China, including the Court of Final Appeal, the airport financial support agreements, travel documents and the adaptation of laws. Issues, she added, that needed to be resolved "sooner rather than later" as time was fast running out.

However, Mrs Chan made it clear that despite these problems there was regular and very good co-operation with the Chinese on a day-to-day basis. She instanced the recent establishment of the infrastructure co-ordinating committee which considers major projects straddling the border between Hong Kong and China; the co-operation between the Royal Hong Kong Police Force on cross-border crime; and the big increase in the number of official delegations visiting China or Hong Kong last year.

"This co-operation and contact will intensify in the months ahead, paving the way for what we're all hoping for a smooth transition."

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She said the international community, including the European Union, had a major stake in seeing Hong Kong continue to develop and prosper, not simply from an investment point of view, but for maintaining a stable East Asian region.

The Chief Secretary also spoke of the opportunities for European businesses in the East Asian region as living standards in the emerging markets rose. This would present tremendous opportunities for the best that Europe had to offer across the board from brand-name consumer goods to telecommunications and construction.

"Above all, Hong Kong is the hub of Asia. With our business-friendly environment, first class communications systems and well-developed infrastructure, we are the natural base for any company wanting to be a part of the dynamic Asian region," Mrs Chan said.

Earlier today, the Chief Secretary called on the Belgian Prime Minister, Mr Jean-Luc Dehaene; held discussions with the UK Permanent Representative to the European Commission, Sir John Kerr; and briefed members of the European Parliament-Hong Kong Friendship Group on the latest developments in Hong Kong and how it will continue to remain a very attractive place in which to do business in the lead up to 1997 and well into the next century.

End/Tuesday, April 25, 1995

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