XN000022-1993-06-23 — Page 6

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WEDNESDAY, JUNE 23, 1993

AN UNBROKEN

"WE ARE IN THE MIDDLE OF

PERIOD OF QUITE HIGH ECONOMIC GROWTH. FOR THIS YEAR WE EXPECT A 5.5 PER CENT REAL GROWTH IN GROSS DOMESTIC PRODUCT.

"PLANNING FIGURE FOR THE PERIOD TO 1997 IS FIVE PER CENT REAL GROWTH OF GDP AS AN AVERAGE.

"OUR GDP PER CAPITA HAS ALREADY OVERTAKEN NEW ZEALAND SPAIN AND HAS ALMOST CAUGHT UP WITH THE UNITED KINGDOM, HE SAID.

AND

TT

ON INFLATION, MR MACLEOD SAID THE FORECAST FOR THIS YEAR WAS 9.5 PER CENT, ALTHOUGH IT LOOKED ACTUALLY AS THOUGH IT MIGHT BE A LITTLE LOWER.

"TO COMPENSATE FOR HIGH INFLATION, HONG KONG HAS VIRTUALLY FULL EMPLOYMENT AND HIGH ECONOMIC GROWTH, HE SAID.

HE EXPLAINED THAT THE RELATIVELY HIGH INFLATION STEMMED FROM A STRUCTURAL SHIFT OF THE ECONOMY FROM A PREDOMINANTLY MANUFACTURING ECONOMY TO A SERVICING ONE.

—

IT WAS TRUE THAT GIVEN THE LINKED EXCHANGE RATE WITH THE U .8. DOLLAR, HONG KONG COULD NOT BASICALLY USE THE INTEREST RATE WEAPON TO COMBAT INFLATION, HE SAID.

HE STRESSED THAT IT WAS A PRICE HONG KONG ACCEPTED BECAUSE THE LINK HAD STOOD THE TERRITORY IN GOOD STEAD SINCE IT WAS INTRODUCED 10 YEARS AGO AND WAS A PROVEN ANCHOR OF HONG KONG'S MONETARY STABILITY.

HE CONCLUDED THAT THERE WAS NO PLACE ON EARTH WHERE ECONOMIC OPTIMISM FOR THE NEXT CENTURY SEEMED MORE JUSTIFIED.

GOVERNOR VISITS KWUN TONG

THE GOVERNOR, THE RT HON CHRISTOPHER PATTEN, VISITED KWUN TONG DISTRICT THIS (WEDNESDAY) AFTERNOON.

AND MRS PATTEN

THEY FIRST VISITED A MUTUAL AID COMMITTEE IN SHUN ON ESTATE AND TALKED TO OFFICE-BEARERS ON ITS OPERATION.

LATER, THEY WENT TO THE ROOFTOP OF A BLOCK THERE TO SEE AND BE BRIEFED ON THE NEARBY JORDAN VALLEY LANDFILL.

DURING THE TOUR OF THE PING SHEK TEMPORARY HOUSING AREA, MR PATTEN WAS CONCERNED ABOUT THE LIVING ENVIRONMENT THERE AND ITS CLEARANCE PLAN. HE ALSO VISITED SOME FAMILIES THERE.

THEY THEN WENT TO THE KWUN TONG INDUSTRIAL AREA AND SAW A KNITWEAR FACTORY ON HUNG TO ROAD.

/BEFORE CONCLUDING