ZCZC
HML NAN 9289
UNCLASSIFIED
TT OTTER
EXCED
TT EX
FM HKBTC TO OTTER
270715Z FEB
GRS 890
UNCLASSIFIED
FM BTC HONG KONG
TO TELELETTER DTI
TELELELETTER FILE REF ECO 090/1
OF 270715Z FEBRUARY 87
AND TO TELELETTER ECGD
100/2.
584
люб
必
си
pa
FROM HOLLOWAY, BTC HONG KONG
FOLLOWING FOR TRACY, DTI, OT2/3, 1 VICTORIA STREET, LDN AND FOR MARTIN CRANE, COUNTRY POLICY DIV, ECGD
HONG KONG BUDGET 1987/88
1. THE HONG KONG FINANCIAL SECRETARY, PIERS JACOBS, PRESENTED HIS BUDGET TO THE LEGISLATIVE COUNCIL ON 25 FEBRUARY. THE FULL TEXT OF HIS SPEECH WILL BE SENT TO YOU BY AIRMAIL.
2. THE FINANCIAL SECRETARY SAID 1986 SAW A GENERAL REVIVAL IN ECONOMIC ACTIVITY. DOMESTIC EXPORTS PICKED UP SUBSTANTIALLY AND ACHIEVED A GROWTH RATE OF ABOUT 15 PERCENT IN REAL TERMS. HONG KONG HAD BEEN HELPED, PARTICULARLY IN ITS EUROPEAN MARKETS AND JAPAN, BY THE DEPRECIATION OF THE HONG KONG DOLLAR IN LINE WITH THE US DOLLAR. THE STRONG EXPORT PERFORMANCE HAS BEEN IN SHARP CONTRAST TO THE DECLINE OF FIVE PERCENT RECORDED IN 1985. RE-EXPORTS ALSO HAD PICKED UP, BY 14 PERCENT. RETAINED IMPORTS HAD INCREASED BY 13 PERCENT AND THERE HAD BEEN A VIRTUAL BALANCE ON THE VISIBLE TRADE ACCOUNT. PRIVATE CONSUMPTION EXPENDITURE HAD GROWN BY SEVEN PERCENT AND CAPITAL INVESTMENT BY THE SAME AMOUNT. EXPENDITURE ON PLANT AND MACHINERY HAD RECORDED AN INCREASE OF EIGHT PERCENT, REFLECTING GREATER ACTIVITY IN THE