WEDNESDAY, FEBRUARY 26, 1986
IMPROVING INFRASTRUCTURE TOP PRIORITY
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SIR JOHN
HONG KONG'S FIRST DOMESTIC PRIORITY REMAINED THE STEADY IMPROVEMENT OF THE TERRITORY'S INFRASTRUCTURE, A TASK THAT WAS CERTAINLY WITHIN LOCAL CAPABILITIES, THE FINANCIAL SECRETARY, SIR JOHN BREMRIDGE, SAID IN SUMMING UP HIS 1986-87 BUDGET SPEECH TODAY (WEDNESDAY).
SIR JOHN WARNED THAT CONFIDENCE ABOUT THE FUTURE STATE OF HONG KONG'S ECONOMY HAD TO BE ACCOMPANIED BY CONTINUAL AWARENESS THAT HONG KONG DEPENDED LARGELY ON WHAT HAPPENED ELSEWHERE IN THE WORLD.
WHILE FORMER U.S. PRESIDENT THEODORE ROOSEVELT HAD BELIEVED IN SPEAKING SOFTLY AND CARRYING A BIG STICK, SIR JOHN SAID, FOR HONG KONG HE PREFERRED SCEPTICISM ABOUT ECONOMIC FORECASTS AND CARRYING LARGE RESERVES.
+OUR ECONOMY IS CHANGING RAPIDLY UNDER OUR EYES AS HONG KONG AGAIN BECOMES A MAJOR ENTREPOT FOR CHINA. I WONDER IF WE REALLY YET UNDERSTAND WHAT IS GOING ON,+ SIR JOHN SAID.
+AS A NON-ECONOMIST I PERSONALLY FIND IT DIFFICULT TO COMPREHEND HOW PRESENT PROSPERITY INCLUDING FULL EMPLOYMENT, RISING REAL WAGES, A SWING TO A VISIBLE TRADE SURPLUS AND LOW INFLATION CAN BE RECONCILED WITH LAST YEAR'S OSTENSIBLE LOW FIGURE OF GROWTH IN GDP.+
TURNING TO THE INTERNATIONAL SCENE, SIR JOHN SAID HE HAD A FEELING OF SLIGHT UNEASE AS PERHAPS BEFITTED THE YEAR OF THE TIGER. THE U.S. BUDGET DEFICIT WAS AN OBVIOUS GENERATOR OF PROTECTIONIST SENTIMENT, WHILE OTHER PROBLEMS INCLUDED CONTINUING MONETARY INSTABILITY AND THE OIL SITUATION.
+WHILE CHEAP ENERGY WILL BE OF ASSISTANCE TO EVERYONE, EXCEPT THE OIL PRODUCERS, A SUDDEN COLLAPSE IN OIL PRICES WILL NOT NECESSARILY BE IMMEDIATELY HELPFUL FOR HONG KONG. I FEAR A POSSIBLE RIPPLE EFFECT IN SOME OF OUR EXPORT MARKETS,+ SIR JOHN SAID.
HE SAID HONG KONG HAD CLEARLY PROSPERED IN THE LAST 40 YEARS ALTHOUGH NOT EVERYTHING HAD BEEN DONE WELL IN EITHER THE PUBLIC OR PRIVATE SECTORS, THE LOT OF THE INDIVIDUAL MAN AND WOMAN WAS NOW TRANSPARENTLY BETTER. FURTHER CONTINUED INCREASES IN WEALTH, WHICH HAD TO BE CREATED BEFORE IT COULD BE DIVIDED, DEPENDED ON SEVERAL FACTORS.
FIRST, SIR JOHN SAID, HONG KONG HAD THE JOINT DECLARATION WITH ITS OBJECTIVE OF STABILITY AND PROSPERITY, AND THE COMMITMENT OF THE BRITISH AND CHINESE GOVERNMENTS TO ITS FAITHFUL IMPLEMENTATION.
/SECOND,