TNAG-2914-FCO40-4189-International-support-from-the-USA-regarding-the-future-of-H-1993 — Page 46

MR GOODLAD ́S MEETING WITH THE WALL ST JOURNAL EDITORIAL BOARD: 20 SEPTEMBER 1993, 09:30.

HONG KONG: Points to make

Economy: prospects up to 1997 and beyond

Hong Kong economy strong and business confidence high. Symbiosis of Hong Kong and South China economies a sound basis

for continued prosperity in fastest growing region in the

world in the last decade.

Close linkage with South China of course means that Hong

Kong may be affected by Chinese measures to reign in their

economy; that will also apply in future. But underlying strengths and historical precedent predict a strong long

term future for Hong Kong.

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Hong Kong has successfully weathered several storms in the

past, both economic and political (eg the Cultural Revolution,

the 1987 Stock Market crisis). Confident in its ability to

meet whatever challenges lie ahead.

Since 1987 Hong Kong has taken steps to ensure an even

greater resilience to economic shocks. Banking system extensively reformed; Stock Market regulatory system overhauled and greatly strengthened; recent formation of Hong Kong Monetary Authority further enhances territory's portfolio

of control mechanisms.

Implications of talks with China on democracy.

Grateful for consistent US support for Chris Patten's approach to democracy in Hong Kong.

Hong Kong is successful precisely because its economy is

bedded on strong and independent institutions, a

corruption-free civil service and sound western business

practices, underpinned by the rule of law. Can be no

coincidence that 70% of foreign investment in South China

comes through Hong Kong.

ptm.gdldwpst.BRIEF

JM