(
5
6
7
8
9
10
11
12
13
14
15
16
17
i 18
19
20
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22
23
24
*** 7222
ab 31.
32
e 33
34
35
ab 36
maintain its position as a major international financial, commercial and tourist centre.
It is
now quite clear that the handling capacity of Kai Tak Airport for passengers and cargo handling will be oversaturated before a new replacement airport can become operational. Hong Kong's already prime position as a cont- ainer terminal port is rapidly increasing trade to China, and the associate growth of re-
exports
all mean that we will need to cont- inue to extensively increase our port facil- ities. Also, massive harbour reclamation will
have to be carried out to accommodate our
increasing population.
=
All these projects will place a very heavy demand on our reserves. The Financial Secretary's medium range forecast indicated a satisfactory level of reserve for the period up to 1991/92. Yet, if one examines both the forecasts on consolidated cash surplus and on reserve bal- ances as a percentage of Government expendit- ure, one would notice that the amount will be
on a declining trend after 1989-90. [The medium-range forecast does not include the
very major capital intensive infrastructural development projects that are likely to start right after the forecast period, in the early 1990s. I therefore subscribe wholeheartedly to the prudent approach that is evident in the Budget. In discussing infrastructural development, it has been suggested by some mem bers in the past that Government should not rely on consultants, rather, it should shoulder more of such work itself. I hold a different
view.
Of course, a study or a project must be proved to be absolutely necessary,, it also