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Free trade rush 'to hurt territory'

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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 organisation's 'headlong rush' towards free trade.

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

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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.

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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.

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