XN000022-1984-03-28 — Page 24

WEDNESDAY, MARCH 28, 1984

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CONFIDENCE IN FUTURE IS VITAL - LEE

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IT WOULD BE FOOLISH TO BELIEVE THAT THE POLITICAL UNCERTAINTY DID NOT DICTATE THE ECONOMIC AND MONETARY TRENDS AND IT WAS VITAL NOW FOR HONG KONG TO HAVE CONFIDENCE IN ITS FUTURE, THE HON ALLEN LEE SAID AT THE ANNUAL BUDGET DEBATE IN THE LEGISLATIVE COUNCIL TODAY.

USING COMPUTER LANGUAGE TO ANALYSE WHAT MAKES THE HONG KONG SYSTEM WORK SO WELL, HE SAID, IT IS NOT THE HARDWARE' THAT IS IMPRESSIVE BUT THE SOFTWARE WHICH TAKES MANY MAN-YEARS TO DEVELOP.+

HE SAID THE SOFTWARE COMPRISED EVERY HONG KONG PERSON WHO HAD HELPED TO MAKE THE TERRITORY ONE OF THE MOST WONDERFUL PLACES IN THE WORLD TO LIVE IN.

+ IF THE 'SOFTWARE' IS DESTROYED, THEN THE SYSTEM WILL NOT OPERATE AND THERE WOULD BE NO HONG KONG.

+THEREFORE, WE MUST MAINTAIN THE 'SOFTWARE' AND CONTINUE TO DEVELOP IT IN THE FUTURE SO THAT WE CAN HAVE A SOCIETY THAT WILL PROSPER FOR MANY, MANY GENERATIONS TO COME, HE ADDED.

COMMENTING ON THE BUDGET, HE DESCRIBED IT AS 'WELL-PREPARED AND CAUTIOUS.+

HE AGREED THAT AT THIS POINT IN TIME, THE PROPOSED MEASURES WERE REASONABLE AND ACCEPTABLE WITHOUT CAUSING AN INTOLERABLE IMPACT ON THE COMMUNITY.

HE ALSO TALKED BRIEFLY ABOUT THE NEED TO PAY MORE ATTENTION TO THE MANUFACTURING SECTOR AND TO REVIEW FROM TIME TO TIME+ OUR POLICIES TOWARDS ENHANCING THE GROWTH OF OUR MANUFACTURING INDUSTRIES.+

ON THE CONTROL OF RECURRENT PUBLIC EXPENDITURE, MR LEE SAID, +I FEEL MUCH MORE CAN BE DONE PARTICULARLY WHEN GOVERNMENT FACES A DEFICIT SITUATION, AND AS I HAVE SAID BEFORE, WE CANNOT CONTINUE FOREVER IN DEFICIT FINANCING.+

+GOVERNMENT FINANCING IS NO DIFFERENT FROM COMMERCIAL FINANCING. WHEN A BUSINESS IS IN TROUBLE, THE FIRST THING A MANAGER ASKS HIMSELF IS WHICH CORNERS HE CAN CUT IN ORDER TO TURN THE BUSINESS AROUND, HE SAID.

HE ASKED THE CIVIL SERVICE UNIONS WHO RECENTLY DEMANDED SALARY ADJUSTMENTS BEYOND WHAT THE GOVERNMENT CAN AFFORD TO CALM DOWN AND REALISTICALLY REVIEW THE FINANCIAL SITUATION OF OUR GOVERNMENT+.

HE POINTED OUT THAT OVERALL SALARY INCREASES IN THE CIVIL SERVICE HAD BEEN BETTER THAN THOSE IN THE PRIVATE SECTOR.

MR LEE SAID THAT HIS COLLEAGUES IN INDUSTRY HAD ASKED HIM TO PRESENT THEIR CONCERNS WITH REGARDS TO CIVIL SERVICE SALARY INCREASES IN THE BUDGET DEBATE.

JAS FÜR