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in the UK to Chinese
vileges and immunities to be accorded in the UK members of the Joint Liaison Group which will be established in accordance with the terms of the Agreement.
The Joint Liaison Group will be established
on the entry into force of the Agreement to continue liaison, consultation and the exchange of information between the British and Chinese sides until 2000.
will meet in Peking, London and Hong Kong, at least onet in each place per annum, from 1 July 1988, it will be based principally in
Hong Kong.
It
HONG KONG AFTER THE AGREEMENT
(i) THE ECONOMY
4. All the indicators show that Hong Kong's economy, having borne the uncertainties of the past two years with resilience, is now expanding with renewed confidence. The Hong Kong Stock Exchange Index stood at 989.19 points on 1 October 1984, just after the initialling of the draft agreement. It now (1 March) stands at
1401.15. The linking of the Hong Kong dollar to the US dollar in October 1983 has stabilised the currency and renewed confidence in
it: the Hong Kong dollar on
on 1 March stood one cent higher against the US dollar than it had five months before, and, like the US dollar, is therefore very strong against other currencies.
5.
Hong Kong's Financial Secretary presented his budget for 1985/86
to Hong Kong's Legislative Council on 27 February. His budget projects good economic prospects for Hong Kong in 1985:
(a) a growth rate in the GDP of 7%;
(b)
a growth in exports of 18%
(c)
(d)
a growth of private investment in plant machinery of 16% and in
building and construction of 2%; and
an
inflation rate of 5.5%.
6.
The Financial Secretary forecast a budget deficit of HK$ 1 billion for the coming year. This follows three years of deficits, produced by a combination of world recession, a fall in Hong Kong
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