17
WEDNESDAY, FEBRUARY 29, 1984
SIR JOHN SAID THE PROBLEMS OF THOSE COUNTRIES WHOSE APPETITES HAD EXCEEDED THE IR INCOMES FILLED THE NEWSPAPRES. DEBT WITHOUT DISCIPLINE HAD SAVAGED THEM.
+HONG KONG, WITH ITS HARD-WORKING AND INTELLIGENT PEOPLE, MUST CONTINUE TO ILLUSTRATE THE BENEFITS OF COMMONSENSE, WORK AND THRIFT. WE ARE ONE OF THE FEW COMMUNITIES IN THE WORLD WHERE REAL EARNINGS WILL SOON AGAIN BE RISING.
+THIS IS NOT FORTUITOUS. IT REPRESENTS THE OUTCOME OF THE GOVERNMENT'S STEADY AND CONSISTENT POLICIES, THOUGH OUR EXPORTS WILL ALWAYS REMAIN SUBJECT TO THE PURCHASING POWER AND IMPORT POLICIES OF THOSE WHO BUY OUR PRODUCTS.
+THERE IS NOTHING WRONG WITH CHANGE: BUT WE MUST BE CAREFUL NOT TO CAST EXPERIENCE ASIDE.+
SIR JOHN NOTED THAT NOT ALL IS GOOD IN THE ECONOMY. THINGS HAD TAKEN PLACE THAT WERE CLEARLY DISGRACEFUL.
+ BUT
+FURTHER LEGISLATION MAY WELL BE NECESSARY, HE SAID, GREED CANNOT BE CURED ONLY BY NEW LAWS, AND SELF REGULATION IS PREFERABLE. EQUALLY REQUIRED IS A PROPER SENSE OF SHAME. I SHARE IN IT.
SIR JOHN SAID IT WAS GENERALLY USEFUL FOR THE GOVERNMENT'S ACTIONS OR FAILURES TO ACT TO BE INTELLIGENTLY CRITICISED BY VAR IOUS PRESSURE GROUPS AND THE FREE PRESS. ONE OUTCOME WAS RECOGNITION OF MISTAKES THAT MAY ARGUABLY HAVE BEEN MADE, THUS PROVIDING A SPUR TO PROGRESS.
+WE ALL KNOW THAT NO COMMUNITY CAN STAND STILL AND THAT NO GOVERNMENT IS FREE OF ERROR. NEVERTHELESS THE ESSENTIAL BALANCING OF SPENDING PRIORITIES AGAINST THE NEED TO CONTROL PUBLIC SECTOR GROWTH, AND TO LIMIT TAXATION, IS REGARDED BY SOME AS A SIMPLE ADMINISTRATIVE TASK. WHEN AFFAIRS GO WELL THERE IS ALSO SOME RELUCTANCE TO ACCEPT THAT SENSIBLE GOVERNMENT POLICIES HAVE PLAYED THEIR PART.
+1 EMPHASISE PART, FOR OF COURSE SEVERAL FACTORS ARE INVOLVED. NOT LEAST A COMPETENT AND LOYAL CIVIL SERVICE,+
EXPANDING ON THE EXPORT-LED RECOVERY EXPERIENCED IN 1983, SIR JOHN SAID THIS WAS PARTICULARLY NOTICEABLE IN THE LAST THREE QUARTERS OF THE YEAR, AND FOR THE YEAR AS A WHOLE THE REAL GROWTH RATE OF DOMESTIC EXPORTS WAS 14 PER CENT. THIS LARGELY REFLECTED THE STRONG ECONOMIC RECOVERY IN THE UNITED STATES, WHICH REMAINED HONG KONG'S MAJOR MARKET; BUT IT WAS HELPED BY DEPRECIATION IN THE EXCHANGE VALUE OF THE HONG KONG DOLLAR.
THE INCREASE IN REAL TERMS OF 49 PER CENT IN DOMESTIC EXPORTS TO CHINA WAS ALSO MARKED. IMPORTS INCREASED BY NINE PER CENT IN REAL TERMS. THE BALANCE OF TRADE IMPROVED ACCORDINGLY,
THERE WAS ALSO A RECOVERY IN PRIVATE CONSUMPTION EXPENDITURE IN THE SECOND HALF OF THE YEAR, WHICH PROVIDED A GROWTH RATE FOR THE YEAR AS A WHOLE OF NINE PER CENT.
NEVERTHELESS, TH