XN000022-1986-03-26 — Page 10

WEDNESDAY, MARCH 26, 1986

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ECONOMIC GROWTH MUST BE FIRST PRIORITY

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HONG KONG MUST ALWAYS STRIVE FIRST TO MAINTAIN PROGRESS IN ITS ECONOMIC PERFORMANCE FOR THIS IS THE ONLY SOLID FOUNDATION UPON WHICH OUR FUTURE IS BASED, THE HON STEPHEN CHEONG SAID TODAY (WEDNESDAY).

SPEAKING AT THE ANNUAL BUDGET DEBATE IN THE LEGISLATIVE COUNCIL, HE SAID CONSTITUTIONAL REFORMS MIGHT BE VERY DEAR AND EXCITING TO SOME PEOPLE IN THE COMMUNITY BUT IN THEMSELVES WERE NO PANACEA FOR PROBLEMS AND CERTAINLY NO GUARANTEE FOR HONG KONG'S FUTURE STABILITY AND PROSPERITY.

+WHATEVER THE ADMINISTRATION MAY DECIDE IN FUTURE WITH RESPECT TO OUR CONSTITUTIONAL REFORMS, IT MUST NEVER ALLOW SUCH REFORMS TO PLACE AT RISK OUR ECONOMY AND PROSPECTS FOR ECONOMIC GROWTH,+ HE SAID.

HE WORNED THAT TO DO OTHERWISE WOULD SPELL THE BEGINNING OF THE END FOR ALL IN HONG KONG.

ACCORDINGLY HE REAFFIRMED HIS TOTAL SUPPORT TO THE PRUDENT AND FRUGAL APPROACH ADVOCATED AND ADOPTED BY THE FINANCIAL SECRETARY IN HIS MANAGEMENT OF PUBLIC FINANCES.

HE SAID PUBLIC SECTOR RECURRENT EXPENDITURE MUST CONTINUE TO BE KEPT UNDER TIGHT CONTROL AND FISCAL RESERVES SHOULD, FOR THE NEXT FIVE YEARS, CONSCIOUSLY AND CONSCIENTIOUSLY STRIVE TO INCREASE HONG KONG'S SURPLUSES WITH A VIEW TO RESTORING FISCAL RESERVES TO A LEVEL NOT LESS THAN $10 BILLION, WHICH WOULD BE 25 PER CENT OF PROJECTED RECURRENT EXPENDITURE IN THE YEAR 1989-90.

ON THE ECONOMIC PROSPECTS FOR 1986, HE SAID HE AGREED WITH THE FINANCIAL SECRETARY THAT GROWTH THIS YEAR WOULD BE EXPORT-LED. HOWEVER, HE SAID HE WOULD NOT BE SURPRISED TO SEE DOUBLE DIGIT EXPORT GROWTH IN 1986 IF THE CURRENT ORDER TREND CONTINUED INTO THE THIRD AND FOURTH QUARTERS OF THIS YEAR.

HE NOTED THAT THE CONTINUED VIABILITY OF THE MANUFACTURING- FOR-EXPORT SECTOR MUST BE ENCOURAGED AT ALL TIMES, ADDING THAT THE ADMINISTRATION OUGHT TO DO MUCH MORE IN PROVIDING THE NECESSARY SUPPORT FOR THE TRADING AND INDUSTRIAL INFRASTRUCTURE.

ON A MICRO-LEVEL, MR CHEONG SAID HE SUPPORTED THE UNDERLYING PRINCIPLE THAT ALL MAJOR CHARGES AND TAX RATES SHOULD BE KEPT UP TO DATE AND THAT THEIR YIELD SHOULD BE MAINTAINED IN REAL TERMS.

GOVERNMENT SHOULD MAKE CLEAR TO OUR CITIZENS THAT ALL THE SERVICES RENDERED COST MONEY AND THAT MONEY HAD TO COME FROM SOMEWHERE, HE SAID.

/+THE GOVERNMENT

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