XN000022-1984-03-28 — Page 18

WEDNESDAY, MARCH 28, 1984

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TURNING TO THE DOLLAR LINK AND INTEREST RATES, MR WONG SAID, +THE DOLLAR LINK HAS RESTORED CONFIDENCE AND RESULTED IN A STABLE EXCHANGE RATE WHICH IS IMPORTANT TO TRADERS AND MANUFACTURERS IN MAKING LONG TERM PLANNING.+

+THE FINANCIAL SECRETARY'S DECISION TO HOLD THE DOLLAR PARITY IS A PRUDENT DECISION EVEN THOUGH IT HAS ITS OWN LIMITING FACTORS, HE ADDED.

CONCEDING THAT FREQUENT CHANGES IN INTEREST RATES ARE UNDESIRABLE AND FRUSTRATING IF THE CHANGES MAKE BORROWING MORE COSTLY, MR WONG SAID, +OBVIOUSLY, THE SITUATION PRESENTS A DILEMMA, AND IT WARRANTS CLOSE MONITORING.+

+PERHAPS TIGHTER MONEY CONTROL AND JUDICIOUS INTERVENTION IS THE ONLY ALTERNATIVE IN THE SHORT TERM, HE SUGGESTED.

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GOVERNMENT PRAISED FOR LONG-TERM OUTLOOK

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THE GOVERNMENT WAS TODAY COMMENDED BY THE HON WONG LAM FOR ITS +VERY RESPONSIBLE AND POSITIVE ATTITUDE IN CONTINUING TO TREAT PROGRAMMES AND INFRASTRUCTURE WHICH ARE IMPORTANT TO PEOPLE'S LIVELIHOOD IN THE LONG-TERM PERSPECTIVE.

MR WONG SAID THAT IN RECENT MONTHS, MANY PEOPLE HAD BEEN TALKING ABOUT WAYS OF MAINTAINING PROSPERITY AND STABILITY AFTER 1997.

+TO MY MIND, THE MOST USEFUL WAY IS TO SHOW OUR DETERMINATION AND MAKE EARNEST EFFORT, EVEN IN THE INTERIM PERIOD BETWEEN NOW AND 1997, TO MAINTAIN THE PRESENT PROSPERITY AND STABILITY ON THE ONE HAND, AND SOW THE SEEDS OF PROSPERITY AND STABILITY FOR THE POST-1997 YEARS ON THE OTHER, SO THAT BY THAT TIME HONG KONG WILL STILL HAVE ITS UNIQUE VALUE OF EXISTENCE, HE SAID.

+THE BUDGET FOR THIS FISCAL YEAR FULLY REFLECTS THE GOVERNMENT'S EFFORTS IN THIS CONNECTION, HE ADDED.

HE ALSO COMMENDED THE GOVERNMENT FOR ITS DETERMINATION TO CRACK DOWN ON INFLATION,

HE DESCRIBED GOVERNMENT'S MOVES TO TIGHTEN ITS CONTROL ON THE ESTABLISHMENT AND EXPENDITURE OF THE PUBLIC SECTOR AND TO AVOID AS FAR AS POSSIBLE, RAISING DIRECT TAXATION AS UNDOUBTEDLY POSITIVE ANTI-INFLATIONARY MEASURES AIMED AT BETTERING THE LOT OF THE PEOPLE+.

HOWEVER, HE CONSIDERED THAT THERE WERE SEVERAL POINTS ABOUT Tel BUDGET WHICH CALLED FOR COMMENTS.

'THE FIRST