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