XN000022-1995-12-14 — Page 16

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I mentioned the last of those factors with some vigour because I think it is exceptionally important. When the IMF refers to our success, when the World Economic Forum refers to our success, when others refer to our success, they are referring to the success created by Hong Kong people; Hong Kong people running this

economy.

Does anybody seriously suppose that even though Britain is the sovereign power at the moment that the British Chancellor of the Exchequer or British Treasury officials tell us how to run our economy? They have got quite enough to do in trying to run Britain's economy without running this one.

The reason for our success is because we have been pursuing, ourselves, successful policies and we have not had others interfering and intervening. As a result of that - as a result of that the fiscal reserves of Hong Kong in 1997 will total about 150 billion; the fiscal reserves of Hong Kong by 1998, when you add in the Land Fund, should total about 325 billion. Those are the best possible indications of success. And I hope that anyone who is Chief Executive of the SAR and our prayers and best wishes will go to whoever it is will be as successful in running the Hong Kong economy as Hong Kong officials have been for the last 40 or 50 years.

Dr David Li: Governor, in view of Hong Kong's sluggish economy, high inflation, soaring costs, rising wages and high rents, will you advise this Council what measures will be adopted to safeguard our competitive edge as an international financial centre?

Governor: Heavens above! I wonder where the honourable member is talking about. The honourable member knows even more about the International Monetary Fund than I do. I am sure that he will want to study as carefully as the rest of the Council, when it comes out, the IMF's Report. In view of the question he put he will, presumably, be amazed by the IMF Report - but I don't think anybody else will be.

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Of course there are problems in Hong Kong. Inflation is higher than we would like it to be, though at nine per cent it is almost five per cent less than it was in the year before the 28th Governor arrived in Hong Kong. Of course we would like our GDP growth to be even higher than it is, but at around five per cent, with that predicted to continue by the Asian Development Bank and others the other Asian Development Bank and others into next year, we are still doing pretty well. Of course at 3.5 per cent, unemployment is too high but we have created, I think, about 2.5 per cent more jobs overall in our economy over the last year and the problem has been that the work force has increased by four per cent with a resulting increase in unemployment. All those things could be improved, and I hope they will be improved.

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