XN000022-1990-11-16 — Page 4

FRIDAY, NOVEMBER 16, 1990

ASKED IF THERE WAS A NEED FOR HONG KONG TO RAISE EXTRA REVENUE ΤΟ FUND THE INFRASTRUCTURAL PROJECTS, SIR PIERS SAID AS HE HAD SAID BEFORE, THE GOVERNMENT WOULD NOT CONSIDER THIS IN RELATION TO ANY ONE SINGLE PROJECT OR GROUP OF PROJECTS.

"WE LOOK AT AN OVERALL BUDGETARY POSITION AND I CAN'T OBVIOUSLY SAY AT THIS STAGE WHAT OUR BUDGETARY PROPOSALS ARE, WHETHER WE WILL NEED TO RAISE NEW REVENUE IN THE CONTEXT OF THOSE OVERALL BUDGETARY PROPOSALS, HE SAID, ADDING THAT HE WOULD DEAL WITH THIS IN MARCH.

IN RESPONSE TO A QUESTION ON THE POSSIBILITY OF BORROWING MONEY TO SUPPORT THE INFRASTRUCTURAL PROJECTS, SIR PIERS SAID THE GOVERNMENT WAS KEEPING ITS OPTIONS OPEN.

"IT IS NOT SO MUCH A NEED TO BORROW AS THAT I HAPPEN TO THINK THAT BORROWING COULD BE THE MOST EFFECTIVE AND EFFICIENT WAY OF FINANCING LARGE INFRASTRUCTURAL PROJECTS OF THIS NATURE. AND BORROWING WOULD ENABLE US TO SPREAD THE COST OVER A MUCH LONGER PERIOD OF TIME AND LEAVE US IN A MUCH STRONGER FINANCIAL POSITION.

"SO ONE LOOKS AT IT IN TERMS OF EFFECTIVENESS,

NOT IN TERMS OF NEED," HE SAID.

MOST OF ALL,

HE WENT ON TO SAY THAT WHEN THINKING OF GOING INTO THE MARKET TO BORROW, ONE HAS TO LOOK AT THE GLOBAL SITUATION AND THE CREDIT SITUATION.

"I CAN'T MAKE ANY SPECIFIC COMMENT THIS MORNING BECAUSE WE ARE NOT BORROWING TODAY, HE SAID, ADDING THAT HE COULD NOT BE MORE PRECISE BECAUSE ONE WOULD BE DEALING AT ALL TIME WITH A DYNAMIC SITUATION.

IN HIS SPEECH ΤΟ THE 12TH ASIA-PACIFIC FOREIGN EXCHANGE ASSEMBLY, THE FINANCIAL SECRETARY EXPRESSED CONFIDENCE THAT HONG KONG WOULD REMAIN THE MOST IMPORTANT REGIONAL CENTRE FROM WHICH FINANCIAL INSTITUTIONS COULD SERVICE THEIR CUSTOMERS THROUGHOUT THE ASIA-PACIFIC REGION.

"IT WILL ALSO CONTINUE AS THE MAJOR SERVICE CENTRE FOR SOUTHERN CHINA IN GENERAL AND THE PEARL RIVER DELTA REGION IN PARTICULAR, SAID.

HE

"HONG KONG IS A PLACE THAT HAS ITS OWN UNIQUE QUALITIES WILL SUSTAIN IT IN THE FUTURE.

THAT

"I BELIEVE, AND SO DO MANY OTHERS, THAT HONG KONG IS, CONTINUE TO BE, AN EXCELLENT PLACE IN WHICH TO INVEST, TO DO AND TO MAKE MONEY.

AND WILL BUSINESS

"HONG KONG IS THE MOST IMPORTANT BASE FOR TRADE WITH AND INVESTMENT IN CHINA, AND HONG KONG HAS A CRUCIAL ROLE ΤΟ PLAY IN CHINA'S CONTINUING ECONOMIC DEVELOPMENT.

/"THERE IS