CONFIDENTIAL

My Government will maintain their fight against international terrorism; and continue to seek the release of hostages held in Lebanon. They will continue to combat vigorously the trafficking

and abuse of drugs.

encourage

the

Chinese

My Government will continue to seek ways, with our partners, to

return authorities to

to the path of genuine reform. They will work vigorously and with determination to restore confidence in Hong Kong, building on the foundation of the Sino-British Joint Declaration. They will honour their commitment to the people of the Falkland Islands while continuing to seek more normal relations with Argentina.

Members of the House of Commons

Estimates for the public service will be laid before you.

My Lords and Members of the House of Commons

My Government will continue to pursue firm financial policies designed to reduce

foster sustained economic inflation and growth. Within that framework, my Government will continue to promote enterprise and to facilitate the growth of employment.

They will maintain firm control of public expenditure so that, it while allowing further improvements in priority services, continues to fall as a proportion of national income and thus provides scope for further reductions in taxation, as and when

prudent.

A Bill will be introduced to extend further financial support to

to increase the limits the British Coal Corporation and

on

CONFIDENTIAL

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