TNAG-2457-FCO40-3578-Future-of-Hong-Kong-constitutional-development-presentation-1992 — Page 5

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DAILY MAIL ARTICLE by Charies Powell

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China and Britain are once more at loggerheads over Hong

Kong. That's bad for all three. We need to find a way out of the

impasse.

China and Hong Kong are two of the world's greatest

economic success stories. Hong Kong is 89th in the world in size

of population but the tenth largest trading country. Its per capita

wealth already exceeds that of several EC countries. Milton

Friedman once said: "If you want to know how capitalism really

works, take a look at Hong Kong".

For its part, China has been growing at nearly ten per cent

a year for a decade and bodes to do the same for the next ten

years. That is thanks to the economic reforms which are the

hallmark of its visionary leader Deng Xiaoping. What

industrialised country would not give its eye-teeth for that sort of growth rate?

The prospects for China and Hong Kong in combination after 1997 are breathtaking.

At the same time, China is more than ever a great power. The collapse of the Soviet Union has emphasised China's world- reach. The recent Party Congress gave its blessing to market-led economic reform. That has given China new confidence and assertiveness.

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