XN000022-1981-03-26 — Page 6

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mava 20, 1901

+THE GOVERNMENT, I UNDERSTAND, IS CURRENTLY RENTING SOME 2.7 MILLION SQUARE FEET OF OFFICE PREMISES AND BY THE END OF THE YEAR THIS FIGURE IS EXPECTED TO REACH 3.3 MILLION, ALMOST FIVE TIMES THE TOTAL LETTABLE FLOOR AREA OF CONNAUGHT CENTRE.

+THERE IS ALREADY AN ACUTE SHORTAGE OF OFFICE ACCOMMODATION.

+ IS THE GOVERNMENT COMPETING WITH THE PRIVATE SECTOR AND THUS INDUCING A STEEPER UPWARD SWING OF OFFICE RENTALS?+ MR WONG ASKED.

HE ADMITTED IT WAS NEITHER POSSIBLE NOR DESIRABLE TO CONDUCT ALL GOVERNMENT BUSINESS IN GOVERNMENT BUILDINGS, BUT GIVEN THE PRESENT IMBALANCE IT WOULD BE PRUDENT TO REDUCE" PROGRESSIVELY THE DEPENDENCE ON RENTED PREMISES.

ON CIVIL SERVICE TRAINING, MR WONG REMARKED THAT THE PROVISION OF $26.5 MILLION APPEARS TO BE A RELATIVELY SMALL AMOUNT IN VIEW OF THE SIZE OF THE CIVIL SERVICE.

BUT ENQUIRY REVEALS THAT THE BULK OF TRAINING EXPENDITURE IS PROVIDED DEPARTMENTALLY AND THE ACTUAL AMOUNT MIGHT WELL EXCEED $100 MILLION.

+THIS 'HIDDEN' EXPENDITURE IS CERTAINLY VERY SUBSTANTIAL AND, I PRESUME, WOULD BE SUFFICIENT TO CATER TO OUR TRAINING NEEDS,+ SAID MR WONG.

+WHILE APPRECIATING THAT IT MAY NOT BE EASY TO ITEMIZE WITH ACCURACY EXPENDITURE OF THIS NATURE IN THE DEPARTMENTAL ESTIMATES, A NOTE SHOWING APPROXIMATE AMOUNTS TO BE INCURRED WOULD CERTAINLY BE DESIRABLE,

+SUCH INFORMATION WOULD, I AM SURE, BE USEFUL TO THE GOVERNMENT IN THE MANAGEMENT OF THE CIVIL SERVICE AND TO SERIOUS STUDENTS OF OUR AFFAIRS, +

MR WONG COMMENDED THE FINANCIAL SECRETARY FOR STEERING HONG KONG'S ECONOMY WITH OUTSTANDING SUCCESS DURING THE PAST 10 YEARS.

HE NOTED THAT SIR PHILIP'S ACHIEVEMENTS WERE MANY +BUT TO MY MIND, HIS REFUSAL TO YIELD TO TEMPTATION AND INDEED PRESSURE TO ADOPT A POLICY OF INTERVENTION, SO POPULAR WITH MANY COUNTRIES IN THE 70'S, IS A SINGULAR ACHIEVEMENT+.

MR WONG SAID THAT IN A WORLD OF UNCERTAINTIES, THE FINANCIAL SECRETARY'S CAUTIOUS OPTIMISM WAS MOST REASSURING.

ALTHOUGH RECENT EVENTS IN CERTAIN SECTORS OF OUR ECONOMY HAVE NOT BEEN ENCOURAGING, HE SAID HE WOULD VIEW THEM AS +CYCLICAL OR TECHNICAL ADJUSTMENTS, WHICH ARE NECESSARY AND DESIRABLE, IF OUR OBJECTIVE OF STABILITY WITH GROWTH IS TO BE ACHIEVED.

+HOWEVER, THERE IS NO ROOM FOR COMPLACENCY, PARTICULARLY WHEN WE TAKE INTO ACCOUNT THE MULTIPLIER EFFECT.

+STATED SIMPLY, UPSWINGS AND DOWNSWINGS OF BUSINESS ACTIVITY TEND TO BE CUMULATIVE.

+A SMALL DECREASE IN ACTIVITY CAN BE MAGNIFIED INTO A MUCH LARGER DECREASE IN GDP.

+ IT IS THEREFORE IMPORTANT THAT OUR MANAGEMENT OF THE ECONOMY, ESPECIALLY IN THE COMING MONTHS, SHOULD AS FAR AS POSSIBLE GUARD AGAINST THIS EFFECT, HE CAUTIONED,

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