TNAG-1839-FCO40-2614-House-of-Commons-Select-Committee-on-Foreign-Affairs-enquiry-1989 — Page 65

in les prosperity.

By the early 1980s, and in particular

in the initial phase of the negotiations in 1983, Hong

Kong's economic prospects looked bleak.

The economic

situation was characterised by a serious weakening in the

international position of the Hong Kong dollar;

volatility in the Hong Kong stock market;

and a slump in

property prices and investment.

16. Since the signing of the Joint Declaration, Hong Kong has enjoyed a period of exceptionally rapid economic growth and development. In the past three years the rate

Growth of

The Hong

of growth has been over 10 per cent per annum. about 7 to 8 per cent is expected this year. Kong dollar is now pegged to the US dollar, providing a framework of stability and certainty in which Hong Kong's

external trade has been able to flourish.

The

The

traditional entrepot trade has revived and the container port is now the busiest in the world in terms of throughput. Investment in Hong Kong, particularly investment from China, has grown substantially. economic inter relationship between Hong Kong and China

Hong Kong is now has developed at a very rapid rate: China's foremost trading partner and there is extensive co-operation between Hong Kong and the southern provinces of China in particular. The property market is buoyant; there has been a rapid growth in hotel construction in response to growing tourist demand. Convention Centre, one of the most advanced in the world, has been recently completed and should enhance Hong

Kong's role as a regional business centre.

A new Exhibition and

The Hong Kong