TNAG-1842-FCO40-2617-House-of-Commons-Select-Committee-on-Foreign-Affairs-enquiry-1989 — Page 9

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

18.

16

It has

in particular, the existence of a free port and a

free trade policy has been the bedrock of Hong

Hong Kong's

economy. This has ensured that all sectors of the economy

are subject to, and have to adapt to, the forces of the

world market and that, consequently, its resources are used

in the most efficient and most productive ways.

helped to ensure

faster rate of economic growth and

higher standards of living than would have been the case

with a less market orientated policy. A recent study of

developing countries, using World Bank figures, has shown

that capital

capital has been invested more efficiently in Hong

Kong in terms of the resulting increase in production than

anywhere else. None of the other economies studied had

been required to adjust SO completely, or so rapidly, to

changes in world market forces.

19.

Closely connected with the free port and essential

for it to operate effectively is the free movement of

money. The Hong Kong dollar is freely convertible into all

other currencies. There are no restrictions on the inward

or outward movement of funds and no exchange controls.

20.

A number of other long-standing government

policies have also been important for the development of

Hong Kong's economy. The government does not interfere

unnecessarily with the conduct of private business.

Businessmen are free to conduct their affairs as they like

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