XN000022-1992-10-28 — Page 9

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WEDNESDAY, OCTOBER 28, 1992

THE MAIN STEMMING FROM AGAINST A ΤΟ

TURNING ΤΟ THE PROBLEM OF INFLATION, UNDERLYING

HE SAID CAUSE OF INFLATION WAS THE STRONG DEMAND ECONOMIC GROWTH BOTH IN HONG KONG AND IN SOUTHERN CHINA, LIMITED SUPPLY OF RESOURCES AND THAT THE GOVERNMENT WOULD CONTINUE TAKE STEPS TO CONTAIN AS FAR AS POSSIBLE THESE INFLATIONARY PRESSURES.

HE NOTED THAT THE GOVERNMENT WAS PRESENTLY TACKLING INFLATION ON VARIOUS FRONTS, INCLUDING KEEPING A EXPENDITURE, SEEKING TO IMPROVE EFFICIENCY AND ENHANCE PRODUCTIVITY IN TIGHT REIN ON PUBLIC THE PUBLIC SECTOR, INCREASING THE SUPPLY OF LABOUR THROUGH AN EXPANDED RETRAINING PROGRAMME AND BY IMPORTING FOREIGN WORKERS ON A BASIS AND INVESTING

SELECTIVE

SUBSTANTIALLY IN

PRODUCTIVITY OF THE WORK FORCE IN THE LONGER TERM.

EDUCATION то RAISE THE

FURTHERMORE, HE SAID, THE SERIES OF MEASURES TAKEN BY THE GOVERNMENT TO DISCOURAGE SPECULATION IN RESIDENTIAL PROPERTY HAD HAD A NOTICEABLE CALMING EFFECT ON THE MARKET.

NEW MIDDLE- INCREASE IN

OTHER ANTI-INFLATIONARY MEASURES INCLUDED THE INCOME HOUSING SCHEME FOR THE SANDWICH CLASS AND A REAL THE SOCIAL SECURITY PAYMENTS ANNOUNCED IN THE POLICY ADDRESS, HE SAID.

"BUT I WILL NOT CLAIM THAT SUCH MEASURES WILL DRAMATIC REDUCTION IN INFLATION, I BELIEVE OUR FORECAST OF CENT FOR THE YEAR TO BE REALISTIC, HE SAID.

PRODUCE A 9.5 PER

HE THEN REITERATED THE GOVERNMENT'S FIRM COMMITMENT EXISTING LINKED RATE.

то THE

CAUSE OF OR BASKET OF RATE

STRESSING THAT THE LINKED RATE INFLATION,

WAS NOT THE HE

++ SAID: *A LINK TO SOME OTHER CURRENCY, CURRENCIES, WOULD STILL RESTRICT OUR FREEDOM TO USE THE INTEREST WEAPON.

1

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AND THE NOTION OF FLOATING IS NOT, I BELIEVE, TAKEN SERIOUS OPTION.

AS A

ON THE NEW HONG KONG MONETARY AUTHORITY, SECRETARY SAID HE WAS ENCOURAGED BY THE GENERALLY POSITIVE REMARKS AND THE FINANCIAL MADE IT CLEAR THAT THE AUTHORITY WOULD REMAIN FIRMLY CONTROL.

UNDER HIS

FAST GROWING INITIATIVE THOSE

TURNING TO THE CONCERN EXPRESSED OVER THE PROPERTY MARKET IN CHINA, MR MACLEOD SAID HE WELCOMED THE TAKEN BY THE CONSUMER COUNCIL IN PUBLISHING GUIDELINES TO HELP INTERESTED IN BUYING SUCH PROPERTY.

ON THE AIRPORT CORE PROJECTS, HE STRESSED THAT A SENSIBLE AND VIABLE AGREEMENT WITH CHINA WAS STILL "OUR FIRST PRIORITY"

MORE COST

HE ASKED PEOPLE WHO URGED THE GOVERNMENT TO BE CONSCIOUS OR COST EFFECTIVE ON THE AIRPORT AND AIRPORT RAILWAY TO TAKE HEART FROM THE FACT THAT "WE HAD $19 BILLION WORTH OF TIME AND BELOW BUDGET",

CONTRACTS ON

/"WE MUST