CONFIDENTIAL
CALL BY THE FINANCIAL SECRETARY ON LORD GLENARTHUR: 16 MARCH 1988
Talking points
1.
Hong Kong budget
Congratulations on achieving a budget which combines tax reductions with increases in public expenditure.
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Would nevertheless be interested to know a little more about the basis for the forecast assumptions underlying the budget for example estimated 5% growth in 1988 seems on the cautious side: will experts believe that a much higher growth rate is likely in the coming year?
Does Mr Jacobs expect to make significant revisions in
the mid-year review?
2.
Prospects for Hong Kong economy
Any worries about the dangers of overheating, higher inflation
rates, as a result of excessive demand and labour shortages?
Note that budget is cautious in its forecast of export growth in coming year. But while Hong Kong dollar remains internationally competitive, export prospects will presumably remain bright.
3.
Hong Kong's inter-relationship with China
Mr Jacobs' views on the prospects for an ever-closer economic
inter-relationship with the mainland?
Note that budget suggests that China labour market may have been tapped to its full capacity. As we see it, considerably more potential remains to be tapped.
Mr Jacobs' views about recently announced Chinese plans to open up the entire coastal area of China from north to south.
Implications for Hong Kong?
CONFIDENTIAL