PAGE FOUR XEGRØ994 REST
OF SYSTEM AND PRESSURE INDEED SHIFTED DRAMATICALLY TO INTEREST
RATES. THUS WHILE RESULT OF NEW SYSTEM IS LIKELY TO BRING RELATIVE
STABILITY IN EXCHANGE RATE FOR TIME BEING, THERE WILL BE A PRICE TO
BE PAID IN THE LOCAL MONEY MARKET.
7.ALL OF THIS NEEDS TO BE SET AGAINST A BOOMING MANUFACTURING
SECTOR.VALUE OF SECOND QUARTER EXPORTS ROSE 54 PER CENT OVER FIRST
QUARTER FIGURES. EMPLOYMENT HAS RISEN 8 PER CENT AND UNEMPLOYMENT
HAS FALLED TO 3.9 PER CENT WITH HKONG LOOKING AT PROSPECT OF
VIRTUALLY FULL EMPLOYMENT IN 1984. AS TO EXPORT PERFORMANCE, OVER
FIRST EIGHT MONTHS EXPORTS TO USA ROSE BY 31 PER CENT,CHINA 47 PER
CENT,CDA 39 PER CENT, JAPAN 14 PER CENT AND SON ON.MOST ACTIVE
SECTORS WERE CLOTHING AND ELECTRONIC PRODUCTS.ADJUSTED FOR DECLINE
IN VALUE OF HKONG DOLLAR, EXPORT PERFORMANCE IN REAL TERMS HAS
INCREASED 10 PER CENT.FINANCIAL SECRETARY HAS NOW REVISED HIS
ESTIMATE OF GDP GROWTH FOR YEAR FROM 4 TO 6 PER CENT.
8.HOWEVER FOREIGN INVESTMENT IN HKONG IS STAGNANT WITH DOUBTS ABOUT
1997 REPLACING RECESSION OF LAST TWO YEARS AS DECLARED REASON.IN
MANUFACTURING SECTOR, LARGEST SHARES OF HKONG DOLLAR 7.5 BILLION
FOREIGN INVESTMENT ARE 46 PER CENT OF USA AND 30 PER CENT OF JAPAN.
CHINESE LEADERS REPORTEDLY TOLD VISITORS FROM BOTH COUNTRIES IN
MAR AND AUG RESPECTIVELY THIS YEAR THAT THEY WILL BE ABLE TO
CONTINUE THEIR BUSINESS ACTIVITIES IN HKONG UNHINDERED AFTER 1997.
USA CONGEN HAS PUBLICLY STATED THAT TO HIS KNOWLEDTE NO/NO USA
...5