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of the commercial functions now being carried out in Guangzhou, while Guangzhou, or Guangdong generally, may capture an increasing segment of Hong Kong' s
manufacturing base. With regard to financial services, Hong Kong is likely to become the centre where foreign capital is raised and financing arrangements are made for development of Guangdong.
39.
Guangdong with its greater supply of developable land, its abundant and cheaper labour and its natural resources almost certainly has a long-term advantage over Hong Kong in a wide range of manufacturing processes. Given this situation, Hong Kong's future lies in its
These include exploiting those advantages that it has. natural advantages, like the harbour, and advantages it has developed, like its more skilled labour force, its experience in certain manufacturing industries, its experience in international trade, its accummulated financial and physical capital, and its position as a major regional financial centre. In doing this Hong Kong will tend to revert to its former economic relationship with Guangdong, as a service centre for Guangdong's international trade, but with the advantage that it is now much stronger economically, has a well-developed indigenous manufacturing base and has a financial services sector that has regional and international dimensions and is thus not wholly dependent on servicing indigenous trade
flows.
40.
This vision of Hong Kong as a major service centre for South China, especially Guangdong is supported if one looks at the way that major cities elsewhere have developed as they have matured. For example, originally
both London and New York were, amongst other things,
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