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THURSDAY, MARCH 29, 1984
1983-84 SEEN AS 'ONE OF MOST TURBULENT YEARS'
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THE CONFIDENCE CRISIS HAS CAUSED PEOPLE TO TRANSFER THEIR MONEY TO SAFER PLACES AND THE MYTH THAT THIS IS ONLY THE ROUTINE WHEREBY MONEY FLOWS IN AND OUT REQUIRES MORE THOUGHT, THE HON K.C. CHAN SAID TODAY.
SPEAKING AT THE BUDGET DEBATE, HE SAID, THERE IS A LOT OF DIFFERENCE BETWEEN HOT MONEY COMING INTO SPECULATIVE MARKETS AWAITING A QUICK KILL AND INVESTMENT CAPITAL OF A MORE PERMANENT NATURE SUCH AS CAPITALS FOR MANUFACTURING.
+HOT MONEY IS WATER, AS CAPITALS FOR MANUFACTURING AND PEOPLE'S LIFETIME SAVINGS ARE BLOOD TO OUR COMMUNITY. IF ONE INJECTS A LARGE AMOUNT OF WATER INTO ONE'S BODY AND TRANSFUSES ONE'S BLOOD OUT, ONE CAN IMAGINE THE RESULTS IN THE LONGER TERM.+
MR CHAN DESCRIBED THE FINANCIAL YEAR 1983-84 AS ONE OF THE MOST TURBULENT YEARS BOTH POLITICALLY AND ECONOMICALLY FOR THE PEOPLE OF HONG KONG.+
+POLITICALLY, THE UNCERTAINTY OF THE FUTURE LOOMS LIKE A SHADOW ON THE HORIZON AND IS GETTING BIGGER AND BIGGER EVERY DAY UNTIL IT COVERS ALL OTHER ISSUES AND BECOMES THE SUBJECT' IN EVERYONE'S CONVERSATION, HE SAID.
BUSINESSMEN WERE HESITANT ABOUT INVESTING, AND SOME PEOPLE COULD NOT WAIT FOR THE FINAL ANNOUNCEMENT AND HAD PACKED UP AND EMIGRATED, HE SAID.
+ONLY TIME WOULD TELL WHETHER THEY HAD MADE THE RIGHT DECISION, HE ADDED.
HE OBSERVED THAT IT WAS +HUMAN NATURE AND QUITE UNDERSTANDABLE+ FOR THOSE WHO CHOSE TO STAY BEHIND TO BE CLAMOURING FOR INFORMATION AND TALKING ABOUT THEIR WISHES ALOUD.
ECONOMICALLY, HE SAID, WE HAD SEEN A SUDDEN DEVALUATION OF OUR DOLLAR BY 20 PER CENT WITH A CORRESPONDING INCREASE IN PRICES OF ALL DAILY NECESSITIES.
HOWEVER, HE NOTED THAT ON THE BRIGHTER SIDE OF THINGS, THE DEVALUATION OF OUR DOLLAR HAD GIVEN US A TEMPORARY EDGE OVER COMPETING COUNTRIES.
OUR EXPORTS, ESPECIALLY TO THE UNITED STATES AND OUR RE- EXPORTS TO CHINA, AS WELL AS OUR TOURIST INDUSTRY HAD INCREASED SUBSTANTIALLY, HE SAID.
+AS LONG AS THIS IMPROVEMENT HOLDS AND OUR UNEMPLOYMENT FIGURES REMAINS LOW, OUR INTERNAL PROBLEMS ARE MANAGEABLE, + HE ADDED.
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/+ANY REVALUATION