SWB
FE/7493/A3/2
17
However, two other causes are the most important: The first is that of the 200,000 citizens in Hongkong, 98% are Chinese, our compatriots. With regard to industry, commerce, shipping, and in other respects, the practical things are done by the Chinese. Hongkong compatriots have truly shown a high degree of talent as well as the spirit of hard work and creativity. They have great adaptability and resourcefulness, with a high degree of flexibility and efficiency. The second is the active and strong support provided by the broad interior of the motherland. Most of the grain, vegetables, articles for daily use, and even drinking water used in Hongkong is supplied by the interior. If there were no such supply from the interior, of articles for daily use, materials and raw materials, it would be absolutely impossible for Hongkong to develop so fast, and it might be likely that Hongkong could not subsist even for one day.
The economic malady of Hongkong and its strategy of development
"In your opinion, what is the main malady in Hongkong's economy at present? From a long-term strategy of economic development, what should be the orientation for Hongkong?”
Qian Junrui: When talking of the development already achieved in Hongkong, the Hongkong British authorities have their merits, as mentioned earlier. However, from the point of view of an overall economic strategy, there are grave mistakes. This is reflected in the attaching of great importance to the development of the real estate business, and the fundamental economy - intlustry is neglected. In order to maintain the narrow interests of their colonial rule, the Tlongkong British authorities have practised a policy of "scraping the land” irrespective of the people's livelihood. With an aim to increasing financial revenue, they drive up the price of land and then sell it. At present, the price of land per square foot is the highest in the world, and is higher than in New York or Tokyo. Of all stock exchanges in Hongkong, real estate stocks constitute the majority, accounting for over 80%.
"On the other hand, they do not do their utmost to develop industry. In this respect, they lag far behind Japan. Although Japan also lacks resources and its domestic market is small, Japan still attaches great importance to the development of industry. Hongkong, however, does not emphasize developing its industry. It does not treat industry as a key sector to be coupled with finance, shipping, foreign trade, tourism and other services, in order to establish a relatively healthy economic structure with a solid basis. This kind of economic structure in Hongkong has exposed its seriously weak points. When the world economy experiences a downturn, it is sensitively and unfavourably affected.
"Our government has explicitly decided to restore sovereignty over Hongkong in 1997, and is determined to maintain Hongkong's economic stability and prosperity. We hold that in This period of transition before the restoration of sovereignty, the Hongkong British authorities should gradually overcome the weakness in Hongkong's economy. If this problem is not resolved, it will be difficult to achieve further prosperity. The recent sharp decline of the Hongkong dollar shows exactly the evil effect of this kind of economic structure and economic policy.
"Therefore, I hold that in the transition period, as well as in the rather long period after the restoration of sovereignty over Hongkong, Hongkong should actively develop its industry, especially the textile industry and light industry, which have had a very sound basis, and at the same time, efforts should be made to develop a sophisticated electronics industry, which has a rather good basis, as well as scientific and technological facilities.
"What is more, Hongkong can absorb foreign capital on a large scale. In this way, Hongkong can face the world market, supported by the rich resources and broad market of the interior. Thus, the stability and prosperity of Hongkong's economy will be more securely ensured.
Botan's meltres
not too bad. BUN MISTAKES /
Oreal estaé Condroly eigh
cemanic base
A
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