XN000022-1987-11-04 — Page 27

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WEDNESDAY, NOVEMBER 4, 1987

THAT

APPLAUDED THE

I FULLY FUND IN UPHOLDING THE AND FUTURES MARKETS," HE

"IT WAS AGAINST THIS BACKGROUND GOVERNMENT'S DECISION TO DEPLOY THE EXCHANGE INTEGRITY AND LIQUIDITY OF OUR SECURITIES SAID.

SAKE OF STABILISING HONG "NEVERTHELESS, SINCE 1980, FOR THE

HAS

TO

IN OF DOLLARS DEPLOY HAD

BILLIONS KONG, THE GOVERNMENT UPHOLDING THE INTEGRITY OF OUR MONETARY AND FINANCIAL SYSTEMS.

SUPPORT "DARE I SAY THAT IF A SIMILAR AMOUNT HAS BEEN SPENT IN

BENEFITS TO HONG KONG'S OF INDUSTRIAL DEVELOPMENT, THE LONGER TERM INDUSTRIAL COMPETITIVENESS MIGHT BE EQUALLY GREAT, IF NOT GREATER.

OVER THE PAST DECADE, THE MR CHEONG SAID IT WAS TRUE THAT,

HAD GROWN IMPORTANCE OF THE FINANCIAL SERVICES SECTOR TO THE ECONOMY

TO CONTRIBUTOR A SIGNIFICANT STEADILY AND IT WOULD CONTINUE TO FUTURE GROWTH.

BE

THE SITUATION FOR "BUT, WHILE WE HAVE BEEN ABLE TO STABILISE

LESSONS FROM THIS UNFORTUNATE THE MOMENT, THE GOVERNMENT MUST DRAW EPISODE. THE EXCHANGE FUND IS NOT INEXHAUSTIBLE AND SHOULD NOT REMAIN THE LENDER OF LAST RESORT.

ALWAYS

THE RECENT PAST, WE MUST "IF WE ARE TO AVOID THE TRAUMA OF

INTO IT MOVE QUICKLY TO STRENGTHEN OUR SUPERVISORY SYSTEM AND INJECT THE CAPACITY TO FORESEE PROBLEMS.'

WERE CONCERNED, MR INSOFAR AS OUR ECONOMIC PROSPECTS SAID HE WAS NOT TOO CONFIDENT OF THE NEXT TWO OR THREE YEARS.

CHEONG

ARGUE THAT OUR

LOOK

"SOME MAY

HAVE BEEN INDICATORS ECONOMIC

RECORD OF PERFORMANCE IN SUFFICIENTLY POSITIVE AND THAT, GIVEN OUR

TO A FORWARD

OF REASONABLE RATE THE LAST TWO YEARS, WE MAY GROWTH IN 1988.

IN THE FIRST PLACE,

SOME UNSETTLED FOR

"I WOULD CAUTION AGAINST SUCH OPTIMISM.

LIKELY ΤΟ REMAIN THE WORLD FINANCIAL SCENE IS CONSIDERABLE TIME. THIS MAY EVEN LEAD TO A PERIOD OF, AT BEST, A RECESSION IN THE FUTURE.

MILD

THE OUTPUT OF OUR MANUFACTURING "SECONDLY, PRACTICALLY ALL INDUSTRIES ARE REPRESENTED BY CONSUMER GOODS. THE ULTIMATE SUCCESS IN OUR SALE OF SUCH PRODUCTS IN THE WORLD MARKETS IS VERY MUCH ON THE LEVEL CHRISTMAS SEASON.

OF DEMAND

IN THOSE

MARKETS,

ESPECIALLY

DEPENDENT DURING THE

THE TRAUMA "THE POSSIBLE CONTRACTION OF DEMAND AS A RESULT OF

WORLDWIDE

AFFECT WILL

US EXPERIENCED

ADVERSELY THAT PEOPLE HAVE

HAVE BEEN SLOWING DOWN. I ALREADY THERE ARE SIGNS THAT THE ORDERS EXPECT THEM TO SLOW DOWN EVEN FURTHER."

SPEND

GOVERNMENT SHOULD MR CHEONG SAID AGAINST THIS BACKGROUND, THE

CONTROL AND WISELY

CONTINUE

BUDGETARY EXERCISE TIGHT TO

WHICH DID NOT PARTICULARLY IN RESPECT OF THOSE SERVICES PROGRAMMES DIRECTLY OR INDIRECTLY PROMOTE EXTERNAL COMPETITIVENESS.

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