XN000022-1995-07-06 — Page 6

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Moreover, there are now better mechanisms for handling differences between trading partners, more developed forums for promoting the understanding of how much we all have to benefit from free and fair trade, how much we all have to lose from protection and from managed trade.

I refer of course to the World Trade Organization and to APEC. 21⁄2 years ago the Uruguay Round negotiations seemed interminable. Now those negotiations have been completed and earlier this year the World Trade Organization, with Hong Kong as a founder member, was set up. It provides a better dispute settlement system, and tighter disciplines on the use of anti-dumping measures or subsidies. It will have many battles to fight but all members have committed themselves to open and free trade under an effective multilateral trading system. That system provides Hong Kong with the assurance of opportunity and Hong Kong provides the best living proof of the value of that system.

21⁄2 years ago APEC was at a tentative early stage of growth. Today its members share a common resolve to uphold the multilateral trading system and to achieve a goal of completely free trade in the region by 2020. Later this year in Japan, the APEC Economic Leaders Meeting will be setting out specific proposals on how to achieve that goal and Hong Kong will be hosting some of the preparatory meetings for that gathering.

But I don't just place my faith in negotiations between trade officials. I don't just place my faith in solemn declarations of intent. There is a bedrock of plain fact to which, like the authors of an article in the Asian Wall Street Journal the other day, I always point when having to respond to those who exude pessimism about Hong Kong's prospects.

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Hong Kong is immovably fixed at the centre of the area of greatest economic activity on the planet. I don't just refer to South China, dramatic though the activity there is, with total exports from Guangdong - most of which come through Hong Kong with total exports from Guangdong last year exceeding total exports from the whole of China ten years ago. Nearby there are other well developed economies that provide important trading partners Japan, South Korea, Taiwan and so on. There are new opportunities opening up in Vietnam and in the Philippines, in both of which Hong Kong is taking a leading role in investment. Probably, the leading role.

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To geographical advantage, we add unshakeable commitment to principles that give to you, to Hong Kong manufacturers, service industries and investors, every freedom and incentive to seize the opportunities that lie open to you, or which, through your endeavour, you can create.

Government keeps taxes low and predictable. It does not make your business decisions for you. It invests heavily in the infrastructure - as you see outside, and in the people you need to do your business efficiently. It upholds and respects the rule of law so that you may have confidence that the law will respect and defend you.