17.
The
Memorandum requires the Hong Kong Government, on the basis Of the understandings recorded in the MOU, to plan
its finances with the firm objective that the fiscal reserves
to be left for the use of the Hong Kong SARG on 30 June 1997
will not be less than $25 billion (at money of the day price).
This is within the level of fiscal reserves in our long-term
financial projection and would not unduely constrain planning of the Hong Kong Government's finances.
the
Conclusion
18.
In sum, with Chinese support of the ACP and with
careful financial management by the Hong Kong Government, the
levels Of spending on the ACP can be recommended. The private
sector participation will be robust. Public expenditure in
other areas will still enjoy growth at a reasonable level, the
low taxation regime in Hong Kong will still continue, and the
Hong Kong SARG will start with a healthy financial position.
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