By Murray Evans
The Associated Press

LEXINGTON - The shared love of horses and the horse industry should encourage the continued development of economic ties between Kentucky and the United Kingdom, Princess Anne said during a visit Friday.

The princess made her remarks at a luncheon at the downtown Radisson Hotel to celebrate the signing of a sister cities agreement between Lexington and Newmarket, England. Lexington touts itself as the "Horse Capital of the World," while Newmarket is a center for horse breeding and sales in Great Britain.

The agreement was signed by Lexington Mayor Teresa Isaac and Newmarket mayor Linda Sherer.

The relationship between Britain and Kentucky "is an important relationship and it is something worth celebrating," Princess Anne said. Events like the Kentucky-United Kingdom Trade, Investment and Tourism Luncheon and the signing of the agreement between Lexington and Newmarket can only help foster personal ties between the two entities, she said.

"This will encourage more personal contacts and personal visits and involvement between these two cities," she said. "We should never forget the importance of those personal contacts."

Princess Anne is visiting Kentucky at the invitation of Gov. Paul Patton and his wife, Judi. The Pattons extended the invitation to the princess last summer, while they were on an economic development and trade trip to England.

Patton wanted the princess to officially open the exhibit of "All the Queen's Horses: The Role of the Horse in British History" at the Kentucky Horse Park's International Museum of the Horse.

During the luncheon, Patton spoke about the close economic ties between Kentucky and the United Kingdom.

The Pattons are the official hosts for the princess, who is the second child of Queen Elizabeth II and Prince Philip (the Duke of Edinburgh) and the sister of Prince Charles, while she tours Kentucky.

In a rare joint public appearance, Patton and his wife, Judi, greeted Princess Anne Thursday night before escorting her into a private dinner at their residence.

Thursday's joint appearance by the Pattons was a rare occurrence of late. They have made few public appearances together since the governor acknowledged having an affair with nursing home owner Tina Conner.

The princess is staying at the Versailles home of Will Farish, the U.S. Ambassador to Great Britain, and his wife Sarah. When Queen Elizabeth visited Kentucky in 1984, she also stayed at the Farishes' home.