XN000022-1993-04-02 — Page 2

FRIDAY, APRIL 2, 1993

Speech by Governor at luncheon

by Centre for European Policy Studies

Brussels today (Friday)

**

Chairman, Ladies, and Gentlemen,

First of all, thank you very much indeed for that gracious introduction and for sliding over so rapidly some of the main elements in my obituaries which have been written in the last few months and somebody asked me yesterday what sort of things I'd been called and I said, "Well, I guess the worst," I said, "is a 'sly lawyer'. So, they said, "But, isn't that a contradiction in terms?"

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However, it's extraordinarily nice to be here today. I asked you when we were coming in how long I should speak for it reminded me of the very first speech I gave to the Rotary Club in my constituency when I was a member of Parliament, and I asked the president as we were going into to lunch, "How long would you like me to speak for? And, he replied, "Well, you go on as you 14ke, but we'll leave at 2115."

You said, chairman, that I should speak for 15 or 20 minutes and then give you the opportunity to ask questions, though that is not mandatory, and we can all knock off earlier if you'd prefer.

A few weeks ago, the Financial Secretary in Hong Kong, delivered our annual budget statement. And it was a statement which would have been greeted with, to put it mildly, some envy in mosc treasuries, finance ministries of the world, He announced that we were expecting once again a rate of growth of GNP between S and 6 *. Our growth rate over the last two decades has averaged 8*, but it's now settled down at around 5 to 6. He announced that we would be cutting our already low taxes, in his budget. But' at the same time, he would be increasing substantially investment, capital investment, in Our infrastructure and increasing expenditure on our social and educational priorities and he announced at the same time that as well as cutting taxes and increasing expenditure, we'd be leaving larger reserves than we'd previously predicted to China when China resumes sovereignty of Hong Kong in 1997. He also predicted, with I think a degree of modesty because we may already have achieved some of the targets that he mentioned, that over the next year or so our per capita GNP would exceed, or certainly come close to those of the United Kingdom, the Netherlands, and Italy. He announced huge increases in private sector, as well as public sector investment, a large percentage increase in our exports and re-exports, confirming us as the tenth largest trading community in the world. And, he was also able to point to signs of social progress. Those who think that Hong Kong is just an economic success story, have got it

have got it wrong, because we can point to substantial social progress as well: our health indicators are in many respects better than those in a number of Community member states. For example, our child mortality rates are lower than those in the United States, United Kingdom, or Australia.

/WE HAVE