XN000022-1992-11-19 — Page 4

THURSDAY, NOVEMBER 19, 1992

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"IT'S A STEP FORWARD, HE SAID, ADDING THAT THE GOVERNMENT WOULD BE SEEKING TO CARRY ON A DIALOGUE WITH CHINA.

"WE STILL PUT AS OUR TOP PRIORITY THE NEED ΤΟ REACH SOME SENSIBLE AGREEMENT WITH CHINA ON THE FUNDING OF THE AIRPORT," HE SAID.

HE SAID THE GOVERNMENT WOULD PAY FOR THIS $9 BILLION CONTRACT FROM THE GOVERNMENT'S RESERVES.

"THIS WILL STILL KEEP US WITHIN THE ORIGINAL FIGURE FORECAST OR ESTIMATED AS BEING NECESSARY TO PUMP INTO THE AIRPORT AUTHORITY.

WHICH WE PROVISIONAL

HE BELIEVED PROCEEDING.

THAT THIS WAS THE MOST UNCONFRONTATIONAL

WAY

OF

―

I AM CERTAINLY HOPEFUL THAT THIS WILL BE WELCOMED WELCOMED IN HONG KONG AS A FURTHER STEP IN THE RIGHT DIRECTION, SAID.

CERTAINLY

中申 HE

ECONOMIC BASES ARE VERY GOOD: FS

DESPITE SOME SHORT-TERM VOLATILITY OF THE STOCK MARKET, HONG KONG'S ECONOMIC FUNDAMENTALS ARE BASICALLY VERY GOOD, THE FINANCIAL SECRETARY, MR HAMISH MACLEOD, SAID TODAY (THURSDAY)

SPEAKING TO REPORTERS AT THE GOVERNMENT SECRETARIAT, MR MACLEOD SAID: "WE HAVE BASICALLY A VERY GOOD ECONOMIC SITUATION AND WHATEVER TEMPORARY POLITICAL DEBATE THERE MAY BE, THAT REMAINS TRUE.

"SO I WILL JUST SAY THAT WE MUST KEEP THINGS IN PERSPECTIVE. INVESTORS SHOULD BE CALM.

MR MACLEOD STRESSED THAT PEOPLE SHOULD FOCUS NOT JUST ON THE VERY SHORT BUT ON THE MEDIUM AND LONG TERM WHERE THE PROSPECTS REMAIN EXTREMELY GOOD.

"WE ARE AT THE CENTRE OF THE FASTEST GROWING AREA IN THE WORLD. OUR FORECASTS FOR ECONOMIC GROWTH, I NOTICE, HAVE BEEN SLIGHTLY CONSERVATIVE, IF ANYTHING.

"IF YOU LOOK AT THE RECENT ASIAN DEVELOPMENT BANK FORECASTS THEY'RE FORECASTING SIX PER CENT FOR HONG KONG THIS YEAR AND SIX PER CENT FOR NEXT YEAR. THEY'RE ALSO FORECASTING 12 PER CENT FOR CHINA, HE SAID.

H

MR MACLEOD NOTED THAT ALTHOUGH POLITICAL ISSUES

NOT RESOLVED, THE ECONOMY CONTINUED TO GROW, TRADE FIGURES STILL CAME OUT EXTREMELY WELL AND INVESTMENT WAS STILL COMING IN.

WERE

"SO WE'RE FORTUNATE TO BE SITTING ALONG A VERY ROBUST ECONOMY FUELED, OF COURSE, PARTLY BY A VERY HEALTHY ASIAN ECONOMY CHINESE ECONOMY.

AND THE

/"SO THAT'S