XN000022-1988-03-02 — Page 36

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"I HAVE NO DOUBT, HOWEVER, GIVEN THAT BE OPERATING AT NEAR FULL CAPACITY, THAT ANY

RESULT IN BE INAPPROPRIATE AND COULD WELL THAN GREATER REAL GROWTH, MR JACOBS SAID.

PI

WEDNESDAY, MARCH 2, 1988

THE

ECONOMY WILL STILL FURTHER STIMULUS WOULD HIGHER INFLATION RATHER

PARTICULARLY

CONSCIOUS THAT HIS HE SAID HE WAS PROPOSALS IMPLIED REAL GROWTH IN SPENDING IN 1988-89 HIGHER FORECAST FOR ECONOMIC GROWTH.

EXPENDITURE THAN HIS

OF THE CIVIL "FURTHERMORE, THE INDICATIONS ARE THAT THE SIZE

NEXT FEW YEARS, AT A SERVICE IS SET TO INCREASE, FOR AT LEAST THE

HE ADDED. RATE FASTER THAN THAT OF HONG KONG'S LABOUR FORCE,"

HE SAID IT WAS INEVITABLE, HOWEVER, THAT IN SOME YEARS SPENDING WOULD BE ABOVE THE TREND.

THE LONGER TERM "CONTINUING CARE IS NEEDED TO ENSURE THAT IN

REGARD, WE WE MOVE BACK TO OUR PLANNING CRITERIA. IF WE FAIL IN THIS

EXPENDITURE GROWTH RATES THAT MAY FIND OURSELVES LOCKED INTO HIGH CANNOT BE REDUCED IF AND WHEN CIRCUMSTANCES TURN AGAINST US.

ΤΟ

RATES

'WE COULD THEN FIND OURSELVES IN A POSITION OF BEING FORCED

THAT INCREASE, ERODE SIGNIFICANTLY INCREASE TAXATION, AND, THROUGH OUR COMPETITIVE EDGE BEARING IN MIND THE MOVE TOWARDS LOWER TAX WORLDWIDE, MR JACOBS ADDED.

11

"BUT LET ME NOT END ON SUCH A SOMBRE NOTE,

"HONG KONG HAS PROSPERED OVER THE LAST TWO

SOME OF THE BEEN ABLE TO RETURN TO OUR PROSPERITY.

COMMUNITY

YEARS AND I HAVE FRUITS OF THAT

TE

"IT IS A TASK I HAVE ENJOYED, MR JACOBS SAID.

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