XN000022-1988-04-19 — Page 23

TUESDAY, APRIL 19, 1988

H.E. THEY AS BODIES DON'T HAVE AN INPUT INTO IT BECAUSE IT IS A MATTER FOR THE NATIONAL PEOPLE'S CONGRESS. MEMBERS

OF THE VARIOUS BODIES, BECAUSE THEY ARE PEOPLE LIVING IN HONG KONG, HAVE THE SAME RIGHT AND ABILITY TO PUT FORWARD VIEWS ON WHAT SHOULD BE IN IT AS OTHER PEOPLE IN HONG KONG, AS I SAID, I WOULD EXPECT MEMBERS OF THE LEGISLATIVE COUNCIL TO WISH TO DISCUSS IT IN THE LEGISLATIVE COUNCIL. WHETHER THEY WILL ACTUALLY PUT FORWARD A MOTION TO DO SO I DON'T KNOW AND I DOUBT IF THEY WILL DECIDE UNTIL THE BASIC LAW DRAFT HAS BEEN PUBLISHED.

STEVE GLAIN, FROM KNIGHT-RIDDER FINANCIAL NEWS: YOU MENTIONED ONE WAY TO HALT THE SO-CALLED BRAIN DRAIN IS TO RUN A SOCIETY AND AN ECONOMY THAT PEOPLE WILL WANT TO STAY AND ENJOY OR RETURN ΤΟ. THE GOVERNMENT NOW SEEMS TO BE SITTING ON WHAT IS REPORTED TO BE UP TO 10 BILLION DOLLAR BUDGET SURPLUS. CAN YOU COMMENT ON WHAT ARE SOME OF THE BEST WAYS TO INVEST THAT MONEY OR DISTRIBUTE IT IN ORDER ΤΟ CREATE AND REACH THOSE GOALS?

H.E.: I WAS DISCUSSING THIS THE OTHER DAY WITH A BRITISH MEMBER OF PARLIAMENT AND HE SAID HE THOUGHT THAT THE CHANCELLOR OF THE EXCHEQUER AND MOST FINANCE MINISTERS THROUGHOUT THE WORLD WOULD BE DELIGHTED TO FIND THEMSELVES WITH SUCH A SURPLUS!

IT

BUT IT'S NOT THAT EASY, YOU CAN'T SIMPLY RUN A HAND-OUT ECONOMY BECAUSE EVEN THOUGH THERE IS A VERY SUBSTANTIAL SURPLUS THIS YEAR, AND I SEE THERE ARE PRESS REPORTS ABOUT THE POSSIBILITY THAT MAY BE GREATER THAN PREVIOUSLY ESTIMATED, NEVERTHELESS YOU HAVE TO PLAN YOUR EXPENDITURE FOR THE LONG TERM. YOU CAN'T SIMPLY USE THE SAVINGS OF A GOOD PERIOD AND BLOW THEM ON POLICIES WHICH WILL HAVE LONG TERM IMPLICATIONS FOR CONTINUING HIGH EXPENDITURE. IT MAKES SENSE TO BE PRUDENT WITH THE MONEY THAT YOU'VE GOT WHEN YOU ARE DOING WELL SO THAT YOU HAVE THE ABILITY TO TIDE OVER PERIODS WHEN YOU ARE NOT DOING SO WELL.

NOW, THAT SAID, AS IN SOME OF THE THINGS I DESCRIBED AT THE BEGINNING, THERE ARE MASSIVE PROGRAMMES GOING ON IN HONG KONG TO MAKE SURE THAT THE ECONOMY REMAINS BUOYANT WHICH IS CRUCIAL TO EVERYTHING WE DO AND TO TRY TO IMPROVE THE QUALITY OF LIFE IN HONG KONG.

LEUNG CHAU-YIN, FROM COMMERCIAL RADIO (IN CANTONESE): RECENTly, 3IR DAVID, THE MTRC RAISED A PROPOSAL OF INCREASING FARES. ACCORDING TO MISS LYDIA DUNN, YOU, SIR, HAVE THE FINAL RIGHT TO RULE OUT THIS FARE INCREASE. WILL YOU DO SO? AND DO YOU FEEL THAT THE PRESENT ORDINANCES GIVE TOO MUCH POWER TO THE MTRC TO DECIDE ON MATTERS OF THIS SORT?

/H.E.: