I noted earlier that authorities on both sides have made good preparations to permit a smooth economic transition. I sense, however some many believe that politics and economics are somehow mutually exclusive. This is too simple a view. There is no firewall between economic freedom and freedom in its many other dimensions. The free flow of information is essential to free society, to free markets, and to a strong financial system.
Integrity also is central to both economics and politics.
Hong Kong's success as a financial center has been based to no small extent on its civil service's professionalism and honest administration, and on the transparency of its regulation. If prosperity is to be maintained, these too must be maintained. It is important to recognize that economics, and particularly finance, is driven by expectations and perceptions. Even a perceived risk that China is seeking to undermine Hong Kong's autonomy or tamper with the formulas that have made it so successful could severely damage Hong Kong's standing in international financial circles and, by association, its economic prospects. I stress these points because I am convinced that in the global economy of the 21st century, even more than in the economy of the 20th century, the quality of governance will be a key determinant of prosperity.