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50
In the property market, demand for most types of private
sector property has been strong this year reflecting a revival of
interest in property investment generally Following a strong
recovery in the property market
1985, prices and rentals held
firm, while trading in property was active
in
(c)
Trade relations
51.
forces
Hong Kong's longer term economic performance remains
dependent on external
The threat of protectionism in Hong
particularly the United States,
exports to China
modernisation programme, Hong Kong's
Kong's major export markets,
remains.
While prospects for
longer term given China's
domestic exports and re-exports
appear good
in
the
to China have been affected by
tighter Chinese control on imports since April 1985.
52
The Hong Kong Government will continue to make every effort
to counter protectionist pressures and to defend Hong Kong's trading
interests. The past year
has seen the satisfactory conclusion of
several new agreements of vital importance to Hong Kong's textiles
and garments industries
These include the extension of the
Multi-Fibre Arrangement until July 1991 and bilateral agreements
textiles with the United States and with the European Community.
53.
on
A s from 23 April 1986 Hong Kong has been a separate
contracting party to the General Agreement on Tariffs and Trade and,
in that capacity, has supported the launching of the Uruguay round
of multilateral trade negotiations in November. In the forthcoming
discussions Hong Kong will lend particular support to efforts to
bring about trade liberalisation and improved market access: it has
considerable interest in negotiations on trade in services, a sector
of growing importance to the Hong Kong economy.
(d)
Public Finances
54.
year
The Hong Kong Government budget returned to surplus in the
financial
1985/86 after three
years of deficits.
For the
financial year 1986/87, higher yields from earnings and profits tax
are expected, and the income from land sales will also be higher.
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