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A VISION OF THE FUTURE

as regional headquarters. So do many other international companies. We welcome this. Indeed we hope that others will follow suit.

Hong Kong: the Gateway to China

I have already referred to Hong Kong's role as a gateway to China. Statistics can be dull; but in this area they are startling and revealing. Our re-exports increased by 51 per cent in value in the single year 1987 to 1988. Almost a half of these originated in China and over one-third went to China. China has used Hong Kong as a gateway for its exports for many years. But it is only relatively recently that we have played such an important role as a channel for its imports. Our Asia-Pacific neighbours have been especially quick to see Hong Kong's potential in this area. For example, in 1988 about one quarter of all Japanese exports to China were routed through Hong Kong.

Hong Kong also plays a key role in foreign investment in China. Up to 1988, some 70 per cent of all such investment was by companies incorporated or registered in Hong Kong. Not all of these were Hong Kong companies. Many were foreign ones which had chosen to use Hong Kong as their base for this investment; and why not? We are not only on China's doorstep. We also have unrivalled expertise in dealing with Chinese officials and enterprises, particularly in Guangdong Province, and the full range of back-up services that an investor needs.

For many years to come, China will continue to be an important market for foreign exporters and investors and Hong Kong will continue to be the best means of access to it. By playing an intermediary role, we can also continue to be of benefit to China. We can provide investment, foreign exchange and expertise to help the Chinese economy continue to expand and develop.

Participation in International Organisations

Hong Kong naturally wishes to play an active role in international organisations that help to shape the world we live in and that deal with issues that affect our own interests. In doing this, we have devoted most effort to economic and trade matters. Hong Kong became a separate contracting party to the General Agreement on Tariffs and Trade (GATT) in April 1986. We play our part in it vigorously and responsibly. Hong Kong officials serve as chairmen or members of a range of GATT bodies and dispute-settlement panels. Our role as a major trading economy; our determination to uphold the principles of free trade, and our willingness to act as a link between developed and developing nations have also enabled us to play a significant role in the important Uruguay round of multilateral trade negotiations.

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Apart from the GATT, Hong Kong also takes part in some 40 international organisations at government level. We have made good progress in the Joint Liaison Group in making sure that Hong Kong will continue to be represented in these international organisations after 1997. In addition, Hong Kong is also represented by private individuals or community bodies in hundreds of non-governmental organisations in the business, sporting and cultural fields. Our voice is now being heard more often and to better effect.

Hong Kong's Image in the World

For many years, Hong Kong's international image was that of a producer of cheap, low quality goods. We fought very hard to overcome that image, with considerable success. People began to see Hong Kong for what it is a bustling, modern city of successful entrepreneurs.

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