XN000022-1985-03-27 — Page 18

17

WEDNESDAY, MARCH 27, 1985

+ THE STATUS OF HONG KONG IS UNIQUE. WE HAVE TO ESTABLISH CLOSE LINKS AND ENGAGE IN ACTIVITIES WITH OTHER COUNTRIES FOR THE PURPOSE OF PROMOTING INTERNATIONAL TRADE. BESIDES, THE INTERNATIONAL EXCHANGE OF FINANCIAL ACTIVITIES IS ALSO AN IMPORTANT FACTOR FOR THE SURVIVAL AND DEVELOPMENT OF HONG KONG.

+THE INFLOW AND OUTFLOW OF CAPITAL AND ITS MANAGEMENT, VISIBLE AND INVISIBLE, SHORT-TERM AND LONG-TERM, ARE INTERWOVEN WITH THE ECONOMIC ACTIVITIES OF HONG KONG. AND HONG KONG THUS DERIVES BENEFITS IN VARIOUS SPHERES,+ HE SAID.

IN THE PAST THREE YEARS, MR WONG SAID, THE GOVERNMENT HAD TRIED VARIOUS MEANS TO INCREASE SOURCES OF REVENUE IN ORDER TO ACHIEVE A BALANCED BUDGET.

WHILE NOTING THAT THE PROPOSAL IN THIS YEAR'S BUDGET TO RE-INTRODUCE THE DUTY ON NON-ALCOHOLIC BEVERAGES HAD AROUSED MUCH PUBLIC OUTCRY, MR WONG SAID IN THE YEARS AHEAD. THE GOVERNMENT WOULD FIND VERY LIMITED NEW SOURCES OF REVENUE WHICH WERE ACCEPTABLE TO THE PUBLIC.

+1 HOPE THAT THE FINANCIAL SECRETARY WOULD IN FUTURE SPEND HIS EFFORTS ON CUTTING EXPENDITURE INSTEAD OF FURTHER TAPPING NEW SOURCES OF REVENUE, HE SAID,

NOTING THE PROPORTION OF PUBLIC SECTOR EXPENDITURE TO

GDP HAD DROPPED 16.4 PER CENT LAST YEAR AND IT WAS ESTIMATED THAT THIS WOULD FURTHER FALL TO 16 PER CENT IN 1985-86, MR WONG CONSIDERED THIS TO BE A GOOD STEP FORWARD IN THE BETTER UTILISATION OF PUBLIC FUNDS.

+

+ON THE OTHER HAND, WE SHOULD NOTE THAT THE GROWTH RATE, IN REAL TERMS, OF GNP WAS 9.6 PER CENT LAST YEAR, WHICH WAS VERY REMARKABLE INDEED, HE SAID.

HE SAID IF THE GROWTH OF PUBLIC SECTOR EXPENDITURE WAS NOT HELD AT BAY, THE PERCENTAGE MIGHT RISE AGAIN.

+I CONSIDERED THAT WE SHOULD CONCENTRATE OUR EFFORTS ON TWO ASPECTS, NAMELY, TO APPLY APPROPRIATE RESTRAINT ON EXPENDITURE AND, MORE IMPORTANTLY, TO SPARE NO EFFORTS IN INCREASING PRODUCTIVITY IN ORDER TO ACHIEVE A BETTER GROWTH IN GDP, HE SAID.

ON THE CIVIL SERVICE, MR WONG SAID THAT WHILE THERE SHOULD BE NO INCREASE IN ITS SIZE, THERE WERE INDEED MANY AREAS WHERE ADDITIONAL STAFF WERE NEEDED TO DO THE JOB.

+PRIORITY WILL BE A VERY IMPORTANT CONSIDERATION IF THIS GOAL IS TO BE ACHIEVED, HE SAID.

/HE NOTED