ECONOMIC AND FINANCIAL SITUATION:
DEVELOPMENTS SO FAR INDICATED THAT AN EXPORT-LED RECOVERY IS
UNDERWAY. DOMESTIC EXPORTS ARE EXPECTED TO GROW BY 11 PER CENT
IN REAL TERMS AND THE GDP BY FIVE AND A HALF SIX PER CENT IN 1983.
THIS IS VERY ENCOURAGING AND ILLUSTRATES THE RESILENCE OF HK'S
ECONOMY AND ITS ABILITY TO RESPOND QUICKLY TO A REVIVAL IN
DEMAND IN OUR MAJOR EXPORT MARKETS.
THE RATE OF INFLATION IS NOW JUST OVER 9 PER CENT PER
YEAR. THE RECENT SHARP FALL IN THE VALUE OF THE HK DOLLAR WILL
CONTINUE TO HAVE AN ADVERSE EFFECT ON THE RATE OF INFLATION FOR
THE REST OF THE YEAR. HK SHOULD CONTINUE TO BENEFIT FROM THE
·I-MPROVEMENTS OF THE WORLD'S ECONOMY WHICH ARE LIKELY TO CONTINUE.
THE GOVERNOR SAID HE WOULD NOT DEAL WITH THE QUESTION OF THE EXCHANGE
VALUE OF THE HK DOLLAR, BUT ADDED THAT IT IS AN ISSUE OF DAILY
ATTENTION AND CONSTANT CONCERN. THE ERRATIC FLUCTUATIONS OF
RECENT WEEKS DO NOT REFLECT THE ECONOMIC AND POLITICAL REALITIES
OF THE SITUATION NOR THE STRENGTHS OF HK'S ECONOMY AND SOCIETY.
PUBLIC FINANCES:
GOVERNMENT REVENUE SO FAR THIS YEAR HAS BEEN LOWER THAN EXPECTED
DUE MANLY TO THE DEPRESSED STATE OF THE PROPERTY MARKET AND THE
RESULTING SHORTFALL IN THE YIELDS FROM LAND SALES. IT IS LIKELY
THAT THE DEFICIT ON GENERAL REVENUE ACCOUNT WILL BE IN THE REGION
OF THE BUDGETTED DOLLARS 3.2 BILLION. THE GOVERNMENT INTENDS TO
CONTAIN ITS EXPENDITURE WITHIN THE BUDGETTED LIMIT OF DOLLARS
35.5 BILLON.
FINANCIAL AND COMMERCIAL SECTORS:
THE GOVERNMENT INTENDS TO RESTORE THE LONG-TERM VIABILITY OF HANG
LUNG BANK WHICH WAS TAKEN OVER BY THE GOVERNMENT LAST WEEK AND
IN DUE COURSE TO RETURN IT UNDER SOUND MANAGEMENT TO PRIVATE OWNERSHIP. THE GOVERNMENT WILL DRAW FROM THIS EXPERIENCE ANY
NECESSARY LESSONS FOR THE BETTER REGULATION OF HK'S BANKING
SYSTEM. THE GOVERNMENT IS NOW CONSULTING BUSINESS AND PROFESSIONAL ORGANISATIONS ABOUT THE PROPOSALS DRAWN UP BY THE SECURITIES
COMMISSION FOR REQUIRING THE DISCLOSURE OF SHAREHOLDINGS AND
DEALINGS. THE PROPOSALS HAVE BEEN APPROVED BY EXCO IN PRINCIPLE.
LEGISLATION IS BEING DRAFTED TO PROVIDE CONTROL FOR AND
REGULATION OF THE OUTBOUND TRAVEL BUSINESS THROUGH REGISTRATION
AND LICENSING. A BILL IS ALSO BEING DRAFTED TO PROVIDE A STATUTORY
FRAMEWORK FOR HIRE PURCHASE TRANSACTIONS.
TRADE AND INDUSTRY:
IF THE RECOVERY OF THE WORLD ECONOMY IS MAINTAINED, HK IS WELL PLACED TO TAKE ADVANTAGE OF THE RESULTING INCREASED OPPORTUNITIES FOR TRADE. FORTUNATELY FOR HK, THE 1982 GATT MINISTERIAL MEETING
REAFFIRMED THE SUPPORT OF GOVERNMENTS FOR AN OPEN TRADING SYSTEM
AS ESSENTIAL TO WORLD ECONOMIC RECOVERY. THE MEETING ALSO DECIDED
THAT GATT SECRETARIAT SHOULD CONDUCT AN URGENT STUDY OF THE PROBLEMS RELATING TO TRADE IN TEXTILES AND CLOTHING. ON INDUSTRY, THE GOVERNMENT HAS DECIDED TO AMALGAMATE THE INDUSTRY ADVISORY BOARD AND THE INDUSTRIAL DEVELOPMENT BOARD INTO A NEW INDUSTRY DEVELOPMENT BOARD. THE GOVERNMENT WILL CONTINUE TO SUPPORT OTHER STATUTORY
OR INDEPENDENT BODIES IN THIS FIELD.
FIELD 3.
THE