XN000022-1997-02-01+02 — Page 3

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CS: Hong Kong matters to the rest of the world

The Chief Secretary, Mrs Anson Chan, said in Houston on Friday (local time) that she is committed to do her utmost to see that the transition goes well, and that Hong Kong continues to grow and to prosper as a free society.

Speaking at a luncheon co-hosted by the Houston Forum and the Asia Society, Mrs Chan said: "I have to say that I am myself an optimist. And I am putting my career where my mouth is by opting to stay on after the handover in my present position as Chief Secretary, and head of the Hong Kong Civil Service.

"My senior colleagues in government, who are also staying on, share that commitment."

In addressing her audience, Mrs Chan introduced by way of background Hong Kong's economic backdrop. She said that in business terms Hong Kong was the pre- eminent international business services city in Asia.

"Hong Kong is where you will find the expertise and connections to develop business in China and in the rest of the East Asian region.

"Our 6.3 million population are responsible for a GDP equivalent to about a quarter of China's GDP. Our per capita GDP is now US$25,000, about the same as the United States itself and more than Canada, Australia or Britain.

"Over 80 per cent of Hong Kong's GDP now comes from the service sector. This is where Hong Kong's main growth has come from in recent years and it is the key to Hong Kong's future. It is the key to understanding why Hong Kong matters to China and to the rest of the world," Mrs Chan said.

In accounting for Hong Kong's success, Mrs Chan said there were more reasons than tight fiscal policies.

"Open minds are also important, as important as our open markets.

"Hong Kong has long had the rule of law and equality of all persons before the law. It has long had the freedoms that you expect here in America. Freedom of expression. Freedom of assembly. Freedom of worship. Freedom of the press.

"These freedoms are not luxuries. They are an integral part of Hong Kong's success, as a society and as an economy," Mrs Chan said.

Mrs Chan then took the audience through why she was optimistic about the wholly unprecedented handover scheduled for July 1997.