XN000022-1996-03-06 — Page 3

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Question: The Government has already given a copy of the budget proposals to the Chinese side. What do you think about the response from the Chinese side?

Governor: I haven't heard that because I've been here enjoying myself in meeting people in Wong Tai Sin.

Question: (inaudible)

Governor: It is hugely in China's interest to do so. China has much the biggest stake in Hong Kong's continuing success. There are commercial interests, there are economic interests, there are matters of face. It matters very much that China does keep its word under the Joint Declaration, and of course everybody will be watching to see what happens. I think that people will take a continuing and very active interest in what happens in one of the most remarkable cities in the world.

Question: For the last budget, what aspect do you think is most important for the Hong Kong Government to co-operate with the Chinese side?

Governor: I think that we have a record which speaks for itself. It's a record of I think 36 years now of uninterrupted economic growth. It's a record which has turned this community into the 8th largest most successful trading community in the world. It's a record that means six million people in Hong Kong producing an economy which is worth over a fifth of China's gross domestic product. So it's been a very successful formula and we must continue that formula. You know what the crucial ingredient is. Of course it matters that we have a sensible tax policy. Of course it matters that we are an open market. Of course it matters that we keep a sensible control of public spending. But the thing that matters more than anything else is that Hong Kong should be able to go on running its own affairs, that Hong Kong should have that high degree of autonomy which is promised. When in the past government has changed in London, it's made no difference to the policies that are pursued in Hong Kong because Hong Kong has autonomy in economic and financial and trade affairs. And so long as that continues to be the case, so long as the people who are running the economy in Hong Kong have "Made in Hong Kong" stamped on them. So long as that is the case, I think Hong Kong will continue to be very successful.

Question: (inaudible)

Governor: I think that the British Government's policy on for example visa-free access announced this week is an extremely sensible one, and I was delighted that the Prime Minister announced it. It has nothing to do with immigration, it has nothing to do with right of abode. It has everything to do with ease of travel, and everything to do with the close, strong and important economic relationship between Hong Kong and Britain and between Britain and Asia.