♦ ♦ Directing the U.S. Information Agency, the Department of Education and other appropriate U.S. agencies to explore ways to improve educational contact between Hong Kong and the U.S. Washington also should encourage private foundations and American businesses to increase their stake in Hong Kong's educational system. The American Chamber of Commerce in Hong Kong, for example, runs an annual student program that brings to Hong Kong undergraduates from China, Taiwan, Macau, and the U.S. to participate in business training programs. In its ninth year, the program has graduated over 350 students. Efforts likewise should be made to bring more Hong Kong stu- dents to the U.S. Some 12,000 Hong Kong students currently are enrolled in more than 700 American universities. Indeed, one out of every 500 Hong Kong residents is enrolled in a U.S. educational institution. Education is the best investment in Hong Kong's future. It provides a reason for Hong Kong's young people to remain in Hong Kong. It assures a credible work force for the international business community after the territory passes into mainland China's hands in 1997.
♦ ♦ Commissioning a study by the Office of Technology Assessment on Hong Kong's future access to high technology. Under current regulations, Hong Kong after 1997 would be subject to the restrictions that would apply to China governing the importation of high-technology products after July 1, 1997. If Hong Kong were subject to these restrictions, it could lose its attrac- tiveness as an international commercial, financial, and telecommunications center. Hong Kong is a major buyer and user of American-made high technol- ogy; its 1989 purchases were $2.8 billion.
♦♦ Moving toward a limited U.S.-China Free Trade Area for Hong Kong. In an FTA, trading partners agree to eliminate those restrictions, such as tariffs, that impede free trade. While Hong Kong's status today as a duty-free port largely renders the economics of an FTA moot, the future political benefits of such a move would be significant. It would express America's sup- port for the free market integrity of Hong Kong. And it would reassure American businessmen that the U.S. government is willing to seek means to assure their interests in the territory after 1997.
As one of its largest foreign markets and principal investors, America is not indifferent to what happens in Hong Kong. Indeed, a politically assured and economically healthy Hong Kong is in the American interest. Washington must recognize that because of its prominent economic and cultural position, the U.S., in effect, has replaced Britain as the preeminent Western player in the territory. Thus, while Hong Kong's status as a British Crown Colony once compelled the U.S. to adopt a low profile regarding the territory's future, the 1997 transfer of Hong Kong to Chinese control now demands greater American attention.
Andrew B. Brick Policy Analyst
No comments yet.
Private notes are available after approval.