XN000022-1996-10-02 — Page 35

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Maintaining Hong Kong's good name

Criticism that Hong Kong's entrepreneurial spirit is being regulated to extinction, with both financial and environmental codes, is preposterous, the Governor, the Rt Hon Christopher Patten, said in the Legislative Council today (Wednesday).

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"The most successful cities of the future will be clean in both senses of the word," Mr Patten said in his 1996 Policy Address when referring to the importance of maintaining Hong Kong's good name and its competitiveness.

"I want to stress in particular our determination to see that our financial markets earn and retain an international reputation for fair dealing.

"Exposing occasional examples of shoddy behaviour, and taking firm action against them, is not a cause of embarrassment for the Government and the regulators, it is a sign of our maturity and our resolve," said Mr Patten.

The Governor said money still flowed in to Hong Kong keeping its currency at the strong end of the link with the US dollar.

People and firms continued to come here, and over the last year 582 new companies from abroad had set up shop in the territory.

"There are, it is true, worries about our costs, especially of domestic and office accommodation. We must continue to bear down on costs everywhere.

"Overall, it is worth remembering that inflation has fallen from about 12 per cent the year before I arrived to 4.9 per cent today - the lowest inflation rate recorded since 1987. That has happened with our trend growth rate remaining at five he said.

per cent,"

Mr Patten said it was also argued that through some inexorable process Hong Kong was losing its competitive edge.

He said: "In a way I welcome the criticism while rejecting its premise. Welcome - because it should help to keep us on our toes. Reject because there is scant evidence that it is true.

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