[asia-apec 121] Free trade rush 'to hurt territory'

[daga]

Free trade rush 'to hurt territory'
by Fiona Holland

South China Morning Post, 15 September 1996

TRADE union leader Lee Cheuk-yan has warned that Hong Kong's economic
miracle would fade if China no longer relied on the territory's business
expertise.

The legislator was speaking at the Manila People's Forum, a group that
opposes the Asia-Pacific Economic Co-operation organization's "head-long
rush" towards free trade.

The forum, a coalition of non-governmental groups, released what it said
were the confidential action plans of organisation members.

Mr Lee said China's plan confirmed its intention to develop a service
industry - which would hurt Hong Kong.

"Our success is from being a service and management centre at a time when
China has opened its doors to foreigners," he said.

But being in the right place at the right time was a passing phase and no
substitute for a solid economic base, he said. "Our development is shaky and
without solid foundation when we depend on the service industry."

Instead, Hong Kong should look to the Asian dragons of Korea, Taiwan and
Singapore which had developed their own manufacturing bases.

Mr. Lee also said the gap between rich and poor would widen after the
handover. He said the new government would collude with tycoons to suppress
workers' rights.