XN000022-1990-04-26 — Page 7

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THURSDAY, ARPIL 26, 1990

ENJOYS "CURRENTLY, HONG KONG

BUT IT IS 'SHAKY', AND IT IS BEING

AND

ΤΟ

WORLDWIDE BUSINESS CONFIDENCE; ERODED AS EVENTS IN CHINA EASTERN EUROPE UNFOLD AND AS OUR ASIAN PACIFIC NEIGHBOURS CONTINUE GROW AT THE FASTEST PACE IN THE WORLD.

THIS

"THE PROPOSED BUDGET MISSES THE STRATEGIC IMPLICATIONS OF EROSION AND PROVIDES INADEQUATE FUNDING FOR THE ADMINISTRATION TO TAKE

WILL CIRCUMVENT NEGATIVE A CO-ORDINATED VIEW THAT

IMPACT ON HONG

KONG," HE SAID.

TAKEN A ON TAXATION, MR CHENG BELIEVED THIS YEAR'S BUDGET HAD

TO INDIRECT GOOD STEP IN BRINGING ABOUT A RELATIVE SHIFT FROM DIRECT

BROADENING THE TAX TAXATION IN

BASE DESPITE VALID WORRIES OVER

INFLATION.

BE FORMED ΤΟ TO DEVISE

HE SUGGESTED THAT A TAX REVIEW COMMITTEE SHOULD

OF A WHOLESALES TAX GO BEYOND EXAMINING THE TENABILITY FUTURE REVENUE STRATEGY AND GUIDELINES FOR FUTURE TAX POLICIES.

MR CHENG ALSO FOUND IT IMPORTANT TO ALLOCATE FUNDS

REMIND [MAGE ABROAD TO

OVERS BAS INVESTORS HONG KONG'S TERRITORY WOULD CONTINUE TO PROSPER AFTER 1997.

TO PROMOTE THAT THE

то RESOURCES

COUNTER STATUS AWAY FROM

FOR ADEQUATE LIKEWISE, HE ALSO CALLED MOUNTING PRESSURE TO TAKE THE MOST FAVOURED NATION CHINA AS IT WOULD SERIOUSLY HURT HONG KONG.

MR CHENG NOTED THAT ANOTHER IMPORTANT AREA OF STRATEGIC SERVICE AND THE BUDGETARY PLANNING WAS IN THE HANDLING OF THE CIVIL RESOURCES NEEDED TO ADMINISTER IT WELL.

BY

TIGHTER HE CONSIDERED

CONTROL ON RECURRENT EXPENDITURE REDUCING THE BASE FOR FUTURE EXPENDITURE A SKILFUL MANAGEMENT DECISION THAT SHOULD RECEIVE CAREFUL SCRUTINY IN FUTURE BUDGETS.

SHOULD RE-EXAMINE

INCENTIVES

GOVERNMENT HE ALSO SUGGESTED THAT THE CIVIL SERVICE PAY STRUCTURE AND LOOK FOR NEW PRODUCTIVITY, AS WELL AS OTHER RECOMMENDATIONS TO STREAMLINE THE OF THE CIVIL SERVICE.

THE

FOR

WORK

MR CHENG SAID THE CIVIL SERVICE

HELP FOSTER CONFIDENCE AND LEADERSHIP TO CONTINUING PROSPERITY.

THE COULD ALSO PROVIDE

TO LEAD HONG KONG IN

"LET ME CALL ON THE CIVIL SERVICE TO DEMONSTRATE LEADERSHIP EXAMPLE THROUGH SELF-RESTRAINT.

BY

DEMANDS INDUSTRIAL ACTION.

"I CALL UPON THEM TO BREAK THE VICIOUS CYCLE THAT HAD BEGUN

MAJOR FOR

SALARY INCREASES, INFLATIONARY

ON PRESSURE AND

"BOTH THE PUBLIC AND

PRIVATE SECTORS

OVERCOME OUR SHORT-TERM PROBLEMS IN ORDER

VISION," HE SAID.

то

MUST NOW TEAM UP TO ACHIEVE OUR LONG-TERM

17