TNAG-2599-FCO40-3787-Appointment-of-Chris-Patten-as-new-Governor-of-Hong-Kong--Ap-1992 — Page 101

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enshrine the policies of the Joint Declaration in U.S. domestic law

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through the "U.S. Hong Kong Policy Act" sponsored by Senator McConnell

drew strong protests from China that such a move would constitute

interference in China's internal affairs. Notwithstanding those protests,

the good intentions of the U.S. were generally welcomed in Hong Kong.

So far, I have concentrated on the legal and political aspects of Hong

Kong's transition into a Special Administrative Region. I should now like

to turn to Hong Kong's economic development which I believe gives cause

for optimism.

HONG KONG'S ECONOMIC DEVELOPMENT

With China in its 14th year of economic reform, the fruits of opening up

to the outside world are now obvious, especially in Guangdong province

adjoining Hong Kong to its north.

The Chinese economy has been developing rapidly, largely because of Hong

Kong participation. Sixty per cent of all foreign investment in China

comes from Hong Kong. Ninety per cent of this is in Guangdong province.

Hong Kong companies now control 25,000 factories in southern China,

employing an estimated three million workers. This is four times the size

of Hong Kong's own manufacturing work force.

The opening up of China has provided a hinterland for Hong Kong, making

available land and labour at low cost. This has removed longstanding