1983 — Page 128

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Perhaps the time has now come for Joint Working Parties between China and Britain to be set up to look into details of what makes Hong Kong different internationally and successful. These Working Parties I think ought to be separated by profession or industry, and not only have members coming from these professions from the current negotiating parties, but most importantly have input from Hong Kong people, especially young people whose career will bridge 1997.

These Working Parties should provide an opportunity for China to know more about what makes Hong Kong tick, and should give Hong Kong people more chance to know about China and Britain's views on how Hong Kong can be run without affecting our life-style, all of which is conducive to boosting confidence in Hong Kong.

International Youth Year

Mr. Chairman, I understand the United Nations has declared 1985 as the 'International Youth Year'. At this time in our history, youth are bound to be a crucial factor, in fact it is no exaggeration that no matter what the outcome of the talks on Hong Kong's future, Hong Kong's success or failure in 1997 rests on the shoulders of those who are in their youth today. It is appropriate that we ought to commemorate the International Youth Year 1985 and prepare to do so in 1984. The Urban Council has always played an important role in encouraging youth activities, and I hope we will not let the opportunity to promote youth participation and development for the good of Hong Kong slip by.

With these words, Sir, I support the motion even though it's at 10 seconds late.

MR. AUGUSTINE S. K. CHUNG (in English):—Mr. Chairman,

The Future of Hong Kong

After two consecutive years of economic recession, we are still unable to spot any sign of economic recovery. In the year of the Pig, many hard-working and conscientious Hong Kong manufacturers and businessmen have suffered heavy loss by reason of the incredibly high interest rate, inflated costs, devalued Hong Kong dollars, cut-throat selling price for their products and withdrawal of credit facilities from bankers! The weaknesses of the minimum interference policy and the absence of a central bank in Hong Kong have been fully demonstrated and painstakingly shared by Hong Kong's industry and commerce in the last two years.

The above predicament was further aggravated by the confidence crisis which has been latent for years but emerged in September, 1982. Most of the people who could leave Hong Kong during the last one year have either done so already or made appropriate arrangements for possible emigration in the near future. There has been a slow but sure exodus of people and money out of Hong Kong in the last one year. The extent is not known but is believed to be serious. Many enterprises have stayed put because they are either enjoying quotas on textile or garments or stuck with their real estates, machineries or for other personal reasons. The exodus could otherwise be far more serious. Many people have already moved their families abroad but stayed behind to continue with their works here on a wait-and-see basis. Apparently, the Hong Kong Chinese do not have sufficient confidence in the formula repeatedly suggested by China in the last one year; otherwise, the above exodus would not have occurred.

Many Hong Kong people have also undergone an acute change in their ways of thinking during the last one year. They have become far more short-sighted than before. Although they are financially not yet capable of leaving Hong Kong for good right now, they have forced themselves or their children to work doubly hard or even try various short-cuts to make quick money. They want to make sufficient money as soon as possible so that they, too, can leave Hong Kong long before 1997. In other words, many people, who cannot leave now, may still choose to leave in the future.

While so many Chinese are trying to leave Hong Kong as soon as possible, foreign investments are coming in steadily to fill the vacuum. The reasons may be summarized as follows:

(1) Hong Kong's capability of becoming one of the biggest exporters and financial centre in the world is attributed to its hardworking and dynamic workforce under the leadership of some of the most capable executives and professionals in the world on the one hand and to its present social, economic and political systems on the other hand.

(2) China has repeatedly indicated that she will not recover sovereignty and administration before 1 July 1997. In other words, all the present systems will remain basically unchanged before 1997.

(3) While many executives and professionals have left Hong Kong making the leadership hierarchy weaker than before, the basic working classes will have to stay behind for many years to come.

(4) While the foreign investors can fill up the vacuum in the leadership hierarchy, the elements contributing to the prosperity and stability of Hong Kong as aforesaid will remain basically unchanged for as long as the foreign investors shall deem fit to remain.

(5) The foreign investors will remain as long as they can take advantage of the relatively cheap but most industrious and dynamic workforce in Hong Kong. They will need such workforce in the manufacturing of those products the markets of which demand so fast a change of models or new designs and functions that the productions of which can hardly

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