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Hong Kong Neighbors
Philippines
More than 100,000 Filipinos are employed in Hong Kong, mostly as domestic workers. Hundreds more leave the Philippines every year to work in the territory -- while sending Hong Kong dollars home.

The Philippine government says it has been assured by Chinese officials that Beijing would protect and maintain the rights of Philippine workers who remain in Hong Kong after July 1.

Vietnam
With a few weeks to go, there were still several thousand Vietnamese refugees in Hong Kong, the final group of "boat people" left in the territory.

U.N. officials say that, since the communist victory in Vietnam in 1975, more than 200,000 Vietnamese fled to Hong Kong. About 140,000 of those refugees have been resettled elsewhere; 65,000 have been returned to Vietnam, 55,000 of them voluntarily. China says it does not want to inherit the Vietnam refugee problem from the British following Hong Kong's handover on July 1.

Vietnam called on Hong Kong's administration to complete the repatriation of the remaining group of Vietnamese refugees -- which reportedly numbered about 4,600 -- before the transition.

Taiwan
No regional neighbor is watching the events in Hong Kong with greater interest than Taiwan. The island has been considered a renegade province by Beijing ever since the defeated Nationalist government fled there at the end of China's civil war in 1949.

For years Taiwan has used Hong Kong as an important transit point for Taiwanese investment in China -- estimated in the tens of billions of dollars. Only recently did Taiwan and China start to allow some limited direct trade.

In May, Taiwan and Hong Kong reached an interim agreement that would allow shipping links to continue after July 1 -- provided the ships take down their national flags when entering each other's harbors.

Taiwan President Lee Tung-hui says his government is "very concerned" about Hong Kong's future under Chinese rule.

Beijing considers itself the sole legitimate Chinese government and has been working to diplomatically isolate Taiwan.

A Chinese Foreign Ministry spokesman says representatives from Taiwan have been invited to attend the handover ceremonies in Hong Kong -- so long as they "conform to the principle of 'One China.'"

Japan
Japan has a large economic interest in Hong Kong. There are more than 2,000 Japanese businesses, including nearly 70 banks, operating in the territory. Nearly 25,000 Japanese nationals live there -- almost as many Japanese as Britons.

Japanese confidence in a post-British Hong Kong appears high. There is currently more than U.S. $16 billion worth of Japanese investment in the territory -- double the amount invested in 1989.

But officials in Tokyo have said that Japanese investors may reverse course if Hong Kong's legal and economic systems deteriorate following the handover.

Singapore
The city-state of Singapore is often compared with Hong Kong and seen as the territory's economic rival in the region. In reality, their relationship is much more complementary than competitive.

About one-fourth of Singapore's trade with Hong Kong is destined for China -- and a growing number of Hong Kong and Singapore businesses have established joint partnerships for investment in China.

Hong Kong companies also use Singapore as a gateway to the growing Southeast Asian economies. Total trade between Singapore and Hong Kong rose by 23 percent in 1995 to nearly U.S. $15 billion.

Still, there is a sense that Singapore is gaining from the uncertainty surrounding Hong Kong's handover to Chinese rule.

Several high-profile businesses have shifted their headquarters and operations south, from Hong Kong to Singapore, in the past several months. And in a recent survey of 6,000 business executives, 73 percent chose Singapore over Hong Kong as a preferred location for a regional headquarters.

Macau
The Portuguese colony of Macau is preparing for its own return to Chinese sovereignty in 1999. Unlike Hong Kong, however, there is little fear and uncertainty about the handover in this enclave of half a million people.

Relations between Lisbon and Beijing have long been marked by cooperation and compromise. In fact, Portugal was ready to formally cede control of Macau as early as 1974.

Under the Joint Declaration signed by China and Portugal in 1987, Macau will share Hong Kong's status as a Special Administrative Region for 50 years after the transition.

Macau is expected to flourish under Chinese rule because the agreement allows the enclave to retain gambling, which is officially forbidden in China.

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