XN000022-1994-03-02 — Page 48

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WEDNESDAY, MARCH 2, 1994

THAT,

HE SAID THIS VERY SATISFACTORY FIGURE REFLECTED THE FACT IN ACCORDANCE WITH THE JOINT DECLARATION, THE SAR GOVERNMENT WOULD RECEIVE THE FULL PROCEEDS FROM LAND SALES, AND WOULD COLLECT RENTS FOR THE EXTENSION OF NEW TERRITORIES LEASES.

"THE END RESULT IS THAT THE FORECAST PREDICTS THAT THE FISCAL RESERVES WILL TOTAL $141 BILLION AT THE END OF 1997/98," HE SAID.

HE ADDED THAT THOSE FIGURES DID NOT TAKE INTO ACCOUNT THE POSITION OF THE SAR GOVERNMENT LAND FUND, WHICH WOULD REPRESENT A SIGNIFICANT ASSET FOR THE FUTURE SAR GOVERNMENT.

HONG KONG ESTIMATES THE FUND TO BE $105 BILLION, BEFORE TAKING INTO INTO ACCOUNT THE DISPOSAL OF SITES ALONG THE AIRPORT RAILWAY.

BUT WHEN ACCOUNT IS TAKEN OF THE FUND'S SHARE OF THE LIKELY ADDITIONAL RECEIPTS FROM THESE SITES, THE BALANCE OF THE FUND IN 1997 SHOULD REACH $125 BILLION.

HAVE

ΤΟ

**THUS,

AT THE END OF 1997/98, THE SAR GOVERNMENT IS LIKELY COMBINED RESERVES, INCLUDING INTEREST, OF ABOUT $269 BILLION, INCORPORATING BOTH THE FISCAL RESERVES AND THE LAND FUND, ' HE SAID.

"

"FORTUNATELY, THEREFORE, WE ARE ABLE TO CONTINUE TO BUILD UP RESERVES GREATER THAN OUR ANNUAL EXPENDITURE.

"THIS IS SOMETHING WE HAVE BEEN ABLE TO ACHIEVE IN RECENT TIMES. AND SOMETHING THAT FEW OTHER COMMUNITIES HAVE BEEN ABLE TO DO."

CLARIFYING THE SETTING UP OF TRADING FUNDS, HE SAID: "ONE OF THEIR OBJECTIVES IS TO FREE APPROPRIATE SERVICES FROM THE GOVERNMENT'S NORMAL EXPENDITURE CONTROLS AND SO PERMIT THEM TO RESPOND MORE READILY TO CHANGING COMMERCIAL CIRCUMSTANCES.

"THUS TRADING FUNDS KEEP ACCOUNTS WHICH ARE SEPARATE FROM THOSE OF THE GOVERNMENT, AND THEIR EXPENDITURE NO LONGER FORMS PART OF GOVERNMENT EXPENDITURE.

"TRADING FUNDS DO, HOWEVER, REMAIN PART OF THE WIDER GOVERNMENT STRUCTURE, AND THEIR PAYMENTS REMAIN WITHIN THE DEFINITION OF PUBLIC EXPENDITURE FOR THE PURPOSE OF MEASURING THE PUBLIC SECTOR SHARE OF THE ECONOMY.'

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