XN000022-1984-09-17 — Page 2

MONDAY, SEPTEMBER 17, 1984

EXCO LEAVES FOR LONDON

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UNOFFICIAL MEMBERS OF THE EXECUTIVE COUNCIL, TOGETHER WITH THE ATTORNEY GENERAL, MR MICHAEL THOMAS, AND THE DIRECTOR OF INFORMATION SERVICES, MR PETER TSAO, LEFT FOR LONDON THIS (MONDAY) EVENING.

THEY WERE SEEN OFF AT THE AIRPORT BY THE DEPUTY TO THE GOVERNOR, SIR PHILIP HADDON-CAVE.

THE GROUP WILL JOIN THE GOVERNOR, SIR EDWARD YOUDE, IN LONDON AND WILL BE MEETING THE PRIME MINISTER AND THE SECRETARY OF STATE FOR FOREIGN AND COMMONWEALTH AFFAIRS ON SEPTEMBER 19 AS PART OF THE PROCESS OF CONSULTATIONS WITH MINISTERS ON THE NEGOTIATION IN PEKING ON THE FUTURE OF HONG KONG.

FOREIGN INVESTMENT KEEPS COMING

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SIR JOHN

DESPITE POLITICAL CONCERNS AND THE THREATS OF INCREASED PROTECTIONISM, IT IS VERY MUCH BUSINESS AS USUAL FOR HONG KONG, WITH FOREIGN INVESTMENT CONTINUING TO COME IN, THE FINANCIAL SECRETARY, SIR JOHN BREMRIDGE, SAID TODAY.

SPEAKING TO THE HONG KONG ASSOCIATION/FAR EAST-AMERICA COUNCIL IN NEW YORK, SIR JOHN SAID, THOSE WHO HAVE BEEN INCLINED TO WRITE US OFF ARE MISTAKEN AND, MORE SERIOUSLY, ARE DOING HONG KONG AN UNJUSTIFIED DISSERVICE.+

OVER THE PAST DECADE HONG KONG'S GROSS DOMESTIC PRODUCT HAS GROWN BY AN AVERAGE OF EIGHT PER CENT A YEAR IN REAL TERMS.

+GIVEN THAT THIS PERIOD INCLUDES TWO RECESSIONS, IN 1974-75 AND IN 1982 - WHEN THE GROWTH RATE WAS ONLY ONE TO TWO PER CENT AN AVERAGE GROWTH RATE OF EIGHT PER CENT IS ENCOURAGING AND REFLECTS THE ABILITY OF THE RESILIENT PEOPLE OF HONG KONG.

+AS A RESULT WE HAVE NO PROBLEM OF UNEMPLOYMENT: IN FACT SOME SHORTAGES ARE LOOMING, HE SAID.

GDP IS NOW FORECAST TO GROW BY EIGHT PER CENT IN 1984, A RATE DESCRIBED BY SIR JOHN AS +PRETTY REMARKABLE IN THE LIGHT OF THE SHOCKS WE HAVE ABSORBED.+

REAFFIRMING HIS INTENTION TO MOVE TO BALANCED BUDGETS IN TWO YEARS, HE SAID, +WE ARE WELL ON OUR WAY, WITH THE DEFICIT THIS YEAR EXPECTED TO BE ONLY ABOUT 0.5 PER CENT OF GDP. I DO NOT LIKE DEFICITS AT ALL BUT YOU WILL AGREE WITH ME THAT THIS IS FAIRLY INS IGN IF ICANT.+

BUDGERARY