XN000022-1991-03-06 — Page 13

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WEDNESDAY, MARCH 6, 1991

"THIS APPROACH WILL ENHANCE THE FURTHER DEVELOPMENT OF THE

DEBT GOVERNMENT

MARKET. IT WILL ALSO HELP TO ESTABLISH OUR REPUTATION, AND ENABLE US TO ATTRACT FUNDS AT THE FINEST RATES."

SIR PIERS SAID FROM THE POINT OF VIEW OF DEVELOPING THE MARKET,

OF WHAT PROPOSING WOULD BE A NATURAL HE

THE WAS GOVERNMENT HAD BEEN DOING SO FAR.

WHAT

EXTENSION

IT SHOULD BE RECOGNISED, HOWEVER, THAT EXCHANGE FUND BILLS WERE FOR THE ACCOUNT OF THE EXCHANGE FUND AND THE MONEYS RECEIVED WOULD

TO GENERAL REVENUE.

BONDS NOT BE CREDITED

THE NEW GOVERNMENT BE FOR THE ACCOUNT OF THE GENERAL REVENUE, HE SAID.

WOULD

TERM MARKET.

THE FINANCIAL SECRETARY SAID HE BELIEVED THAT THERE WERE GOVERNMENT BENEFITS FLOWING FROM A WELL DEVELOPED, LIQUID

LONO

DEBT

MARKET BILLS.

"I AM ENCOURAGED BY THE SUPPORT THAT WE HAVE BEEN GETTING PARTICIPANTS, PARTICULARLY THE MARKET MAKERS OF EXCHANGE

FROM

FUND

OF

|| WHILE

LOOK I

FORWARD TO SECURING AN ADDITIONAL MEANS FUNDING THE GOVERNMENT'S CAPITAL PROGRAMME, THE ISSUE OF GOVERNMENT BONDS SHOULD ALSO PROVIDE BUSINESS OPPORTUNITIES FOR MARKET MAKERS AND AN ATTRACTIVE FINANCIAL INSTRUMENT FOR INVESTORS.

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"AS I HAVE ALREADY INDICATED, THE MAJOR PARt of OUR CAPITAL AND EXPENDITURE WILL CONTINUE TO BE FINANCED BY OUR OPERATING SURPLUS

WAS, CAPITAL

HE SAID, ADDING THAT GOVERNMENT BORROWING REVENUE,

OF COURSE, QUITE SEPARATE FROM ANY FINANCE RAISED BY STATUTORY THE CORPORATIONS SUCH AS THE MASS TRANSIT RAILWAY CORPORATION AND, IN FUTURE, THE AIRPORT AUTHORITY.

FS SUMS UP PERFORMANCE OF HK'S ECONOMY

THE FINANCIAL SECRETARY, THE HON SIR PIERS JACOBS, TODAY (WEDNESDAY) SAID THE ECONOMY OF HONG KONG CONTINUED TO BE AFFECTED BY DEVELOPMENTS IN ITS MAJOR MARKETS.

SUMMING UP THE TERRITORY'S ECONOMY IN 1990 IN HIS 1991-92 BUDGET, SIR PIERS SAID HONG KONG ALSO SUFFERED FROM CAPACITY CONSTRAINTS FOLLOWING UPON THE RAPID GROWTH OF THE ECONOMY IN THE LATTER PART OF THE 1980'S.

"DEVELOPMENTS IN THE MIDDLE EAST AND THE ECONOMIC DOWNTURN IN THE UNITED STATES CREATED MUCH UNCERTAINTY.

"WHILE THE RATE OF ECONOMIC GROWTH FOR 1990 WAS MODEST, PERFORMANCE PICKED UP IN THE SECOND HALF OF THE

THERE WERE IMPROVEMENTS IN BOTH THE EXTERNAL AND THE DOMESTIC SECTORS, HE SAID.

YEAR.

T

/GIVEN THE