TNAG-1985-FCO40-2818-Presentation-of-UK-policy-on-Hong-Kong-to-the-media-1989 — Page 141

provides assurance that pre-1997 arrangements will continue much as they are now after that date; all its provisions are to remain in force for fifty years. Hong Kong is the only place on Earth that has an international, legally-binding agreement guaranteeing that it shall remain capitalist until 2047! (And the Chinese, incidentally, have publicly said that they do not rule out another fifty years after that.)

It has

The Joint Declaration, by removing much of the uncertainty about Hong Kong's future, has underpinned a very remarkable improvement in Hong Kong's economic fortunes since 1984. After two poor years in 1982 and 1983 (with low investment, low growth, a collapse of the property market and the Hong Kong dollar) Hong Kong has, from 1984 to 1988, had an average growth rate of over 12%, and the best five

year period for inward investment in its history. It is now the tenth largest trading entity in the world. developed strongly as the financial, trade and communications centre of the Asia-Pacific region. Banks and multinational corporations have flocked to Hong Kong to set up their regional headquarters. The property market has been strong and any visitor to Hong Kong over the past five years will have been struck by the number of new office blocks, hotels and civic buildings under construction. Business confidence, entrepreneurial flair and vision, have rarely been stronger anywhere than they are in Hong Kong today.

This is not to say that 1997 has ceased to be a factor in people's minds. Far from it, as I shall discuss below. But given the very one-sided and negative impressions given by much recent press coverage, it is important to stress to anyone who does not have up to date first-hand knowledge of Hong Kong, that the place is booming; and that, whatever questions remain to be resolved, there is no shortage of hard-nosed businessmen local as well as American, Japanese and European who are sufficiently persuaded by Hong Kong's long term prospects to invest their money there.

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