C
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signs of improvement and the Hang Seng index (stock
although it has since fallen slightly
exchange), following
an increase in interest rates, recently
reached a four-year high having risen nearly 1000
points in the past year. Unemployment and inflation
figures remain low.
The Hong Kong dollar, which is
pegged to the US dollar, has remained stable against US equivalent despite relatively large
fluctuations in the US dollar against other major
currencies. After three years of budget deficits Hong
Kong's Financial Secretary anticipates a return to
balanced budgets in 1986.
its
18.
to
are expected
the US dollar we ak en
price
or so). Much
s ome of the
In the short term domestic exports remain weak (although should
domestic exports might regain
competitiveness lost over the past year
also depends on the demand in Hong Kong's major export
markets. Domestic export growth could be put at risk
by the growing clamour for trade protectionist
policies,
Despite the
expansion of trading links with China in 1984 (when
Hong Kong's exports to China grew by 60% in real terms), Hong Kong's economic dependence on the US
economy as an export market remains very important.
particularly from the USA.
Constitutional Development
19.
In November 1984 the Hong Kong Government published a White Paper containing proposals for the
further development of
representative Government in
the territory. Prior to publication the Government
had received a wide range of comments during two
months of public consultation. The White Paper was
approved by the Legislative Council (LEGCO) in January
this year.
Its main proposal is for 24 of LegCo's 56
members to be elected at three-yearly intervals (the
other 32 will continue to be appointed by the
Governor).
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