XN000022-1995-09-26 — Page 3

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Mrs Chan admitted that it was not without worries as the reversion of sovereignty to China in 1997 was a unique challenge with no parallel.

"It is no secret that, since 1989, we have had problems. Problems getting agreements between China and Hong Kong on matters of vital importance for Hong Kong," she said.

With the approach of 1997 the climate was improving, she added, and some important agreements had been made.

"In June, China and Britain agreed on the establishment of a Court of Final Appeal for Hong Kong, to be operational on the first day of the new Hong Kong, 1 July 1997. Legislation has since been passed, and preparations are now underway." Final agreement on the financing arrangements for the new airport has been made, enabling the airport corporation to raise loans from international banks to complete the remaining construction work.

Mrs Chan said during her visit to China in early July, she was assured of the importance China attached to Hong Kong civil service.

"The Chinese want Hong Kong civil servants (including expatriate staff) to remain at their posts; they do no want any upheaval or an exodus in 1997 any more than we do," Mrs Chan said.

End/Tuesday, September 26, 1995

Hong Kong offers abundant investment opportunities

Hong Kong as a base for technology-intensive manufacturing offers abundant opportunities to overseas investors in high-tech manufacturing, the Director-General of Industry, Mrs Regina Ip, said today (Tuesday).

Addressing some 200 business leaders at an investment promotion workshop in Tokyo, Japan, Mrs Ip said Hong Kong's manufacturing sector had undergone major restructuring in the past decade.

"It has moved away from low-cost, low-skilled manufacturing towards high value-added manufacturing and serving as the manufacturing-control centre for production in the Asia Pacific region.