XN000022-1996-09-27 — Page 14

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"Anyone can start any legitimate business in Hong Kong. Without hidden constraints, import duty or non-tariff barriers; without prejudice to the nationality of the owners of the business; be they Hong Kong residents, Chinese, Japanese or Americans; and without favouritism or partiality on behalf of Government," he said.

"Our currency is fully convertible and there is complete freedom in the movement of funds and people across our borders.

"We in the Hong Kong Government take this very, very seriously and we are determined to keep this level playing field."

However, Mr Tsang said to stretch the analogy, the Government did not run the game, it just provided the pitch.

"It provides the infrastructure and support to business, but it never directs the private sector," he said.

"We remain impartial, not doing industry targeting or imposing investment priorities, because it is our firm belief that such initiatives are self defeating in the long run, leading to the inefficient deployment of resources and the economically destructive spectre of state subsidies."

Mr Tsang said Hong Kong's economic system would be maintained after next year as the Basic Law set out in detail the requirements placed on the SAR Government to maintain prudent monetary, fiscal and taxation systems and to ensure that Hong Kong remained an international trade and financial centre.

"And that is good news for you and me; for investors in Hong Kong and those doing business in Hong Kong; for the Hong Kong economy, the Chinese economy and for the US economy," he added.

Mr Tsang pointed out that up to the end of 1994 the cumulative value of foreign direct investment in Hong Kong was US$94 billion.

The value of US direct investment alone was over US$11 billion.

"These figures demonstrate the importance of Hong Kong and the importance of maintaining the Hong Kong system. So that business will thrive, profits will be made, and people will continue to prosper," he said.

Mr Tsang was on a duty visit to the United States. Earlier today he met the State Treasurer of California, Mr Matt Fong.