XN000022-1997-04-10 — Page 5

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Question: It's not really a question this. I'm asking for a comment. This is a Chamber of Commerce lunch so I'm not going to talk about the controversy of political situation over the last five years. But nevertheless, I'd like to at least register that in the time of British rule of 150 years, regardless of what people say, there are at least a number of things which I think makes Hong Kong strive the way it does today, because of the business rule. Now, Chris, you'll understand somebody said to me recently, cricket is a colonial game and therefore it really is not to be encouraged in the future. My answer was, is soccer? So you'll understand that. So going back on beyond the time or before the time that you took office, I think there are a number of things which I think should be registered right here that the English language and the way of life is part and parcel of Hong Kong and if that's lost, right, in the future, Hong Kong doesn't stand a chance in the international world. The second thing that I would say is that regardless whether it was intimated, deliberate or by accident, the system of operation within the government in Hong Kong, as I say, things very, very dear to our lives in my group, is that we are in Hong Kong the envy of every other country in Asia or even the world, why you are able the government is able to keep the tax down to what it is at 15% and that is the secret of our success, because 85% of everybody's earnings stays in their pocket. The reason of course is because of the franchise system which is devised over the last 150 years how and what, I don't know, but we're involved in that, it means that every time we build something of infrastructural importance such as something that you omitted to mention despite all the statistics is that the Western Harbour Crossing, of which I am the Managing Director, is opening four months ahead of time, at $7.5 billion, that is equated to 120,000 schools in terms of spending. What the government saves by franchising out to the private sector is the secret of success of Hong Kong. I think this is the most important thing that people should recognise here because no other place in Asia or anywhere else does that and I think that it's a British legacy. Thank you very much, sir. If you'd like to comment on that, I'd be very grateful.

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Governor: I've got a couple of comments. First of all, whether or not cricket is a colonial game. I suppose that in the last few years many of us have thought the real problem was that we did actually teach cricket to the colonies. But you're quite right that all these games are international. You are right in what you say about the English language and of course you are right about the importance of low tax in Hong Kong's success and that one reason for low taxes in Hong Kong is that we have had no difficulty about the concept that private investment should be used to achieve public good. There isn't, and it's again another of the encouraging features of life in Hong Kong, there is none of that rigid demarcation between the private and public sectors which has bedevilled sensible macroeconomics management, I think, in so many European countries so I wholly endorse what you've said.

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