(c)
Trade relations
51.
Hong Kong's
term Longer
economic performance
remains
dependent on external forces. The threat of protectionism in Hong
Kong's
major
export
markets,
particularly
the
United
States,
remains. While prospects for exports to China appear good in the
Longer
China's modernisation programme, Hong Kong's term, given
and domestic
China have exports tighter Chinese control on imports since April 1985.
52.
re-exports
to
been
affected
by
The Hong Kong Government will continue to make every effort 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
the
of include These and
industries. garments Multi-Fibre Arrangement until July 1991 and bilateral agreements textiles with the United States and with the European Community.
53.
A s
extension
a
the
on
from 23
been 1986 April
has Hong Kong
separate
contracting party to the General Agreement on Tariffs and Trade and, in that capacity, has supported the launching of the Uruguay round In the forthcoming of multilateral trade negotiations in November.
to efforts to lend particular support discussions Hong Kong will bring about trade liberalisation and improved market access: considerable interest in negotiations on trade in services, a of growing importance to the Hong Kong economy.
it has
sector
(d)
Public Finances
54.
to surplus in the The Hong Kong Government budget returned
For of
the three financial
deficits. after year 1985/86
years financial year 1986/87, higher yields from earnings and profits tax are expected, and the income from land sales will also be higher
On the basis of present
surplus
trends a significant
close of the current
improvement in the
is Likely at the
financial year.
Nevertheless, the Hong Kong Government will continue to keep public contain the size of the
16% of the about
gr
This will be achieved through prudent management
expenditure firmly under
to control and
· public
sector, presently equivalent to
domestic product.
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