TNAG-2127-FCO40-3037-Investment-in-Hong-Kong-1990 — Page 150

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

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serious setbacks, China trade has remained of enormous

significance.

16.

The secular trends underlying these facts serve to

emphasise where many opportunities

Hong Kong accomplished its

extraordinarily quickly.

!

for the future lie.

industrial revolution

Quite early on we developed both

the appetite and the ability to expand into off-shore

production. We went up-market and moved into areas of

higher technology. But whilst costs remained competitive, capacity limitations locally, increasing management savvy,

and, in some cases, trade restrictions led many of our

businessmen to diversify abroad.

17.

The Chinese, in an imaginative experiment to let

market forces prime the development pump, established the

Special Economic Zones in Guangdong. This and a parallel liberalisation of provincial policies achieved two things.

Hong Kong industrialists gained room for expansion right

next door, and, at the same time, there was created a new

demand for port, trade and financial services, which we in

Hong Kong have been only too happy to meet. Perhaps for

the first time in its history Hong Kong has been enjoying

the benefits of an economically active hinterland.

/18.

Guangdong

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