TNAG-2749-FCO40-3964-Economic-situation-in-Hong-Kong-1993 — Page 54

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started in the late 1970's. In order to assist the efforts of

China to develop and modernize its economy, Japan has extended

Yen loans, grants and other forms of Official Development Assist-

ance (ODA). To China, Japan is the largest donor, while to Japan,

China is the second biggest recipient nation of ODA support.

In terms of Yen loans to China, up to now Japan has extended

the equivalent of some 115 billion Hong Kong dollars in order to

assist with various kinds of infrastructure projects. These

include projects such as the Shenzhen Yantian Harbour construc-

tion project, contributing to the improvements of infrastructure

in Southern China, which is important to Hong Kong.

I believe that economic development will contribute to the

reform and openness of China, and thus in this context, Japanese

economic support extended

extended to China is

to China is also in the long-term

interests of Hong Kong.

(8) The third point I want to make is that despite everything,

feel basically confident and optimistic about the future of Hong

Kong beyond 1997. Firstly, the attractions I cited earlier pro-

vide the basic strength and uniqueness of Hong Kong. I am sure

that China fully understands this. And with the efforts of Hong

Kong people, these basic strengths and uniqueness of Hong Kong