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He envisaged that the real growth of Hong Kong's economy would burst through the current five per cent level and reach six to seven per cent a year before the end of this century.
"Hong Kong already had a developed economy, so even I in my enthusiasm do not envisage a return to double-digit growth in future.
"Nor would I wish to see a return to the problems in terms of inflation, critical labour shortages and resource constraints that accompanies such high growth rates.
"And I can see Hong Kong taking its rightful place in the world of the 21st century as a centre of excellence, management expertise and financial intermediation; as a regional financial and telecommunications hub; as a high-tech manufacturing centre and trading location second to none; and as the place for skills training," said Mr Tsang.
He said Hong Kong people should concentrate their mind on the opportunities that lie beyond July 1, 1997.
He also gave an outline on the preparation of next year's transitional budget.
The Expert Group set up under the Sino-British Joint Liaison Group for this purpose had worked pragmatically and was now set to embark on a joint enterprise of preparing it, said Mr Tsang.
"We already have agreement that the 1997-98 Budget will be a full 12-month budget, and so I have no concerns about its effect on a smooth transition," he said.
"We will thus have the funds to ensure continuity in all our public services and certainly in our financial and taxation policies. This is surely in the interest of everyone.'
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It would be a budget drawn up by the same team that drew up this year's budget, with the full co-operation of the Chinese side, and it would stick to the tried and tested system of financial management and fiscal principles that have served Hong Kong so well in the past, Mr Tsang said.
"All of this recognised by the Chinese side as being consistent with the Basic Law, and they fully agree that we should continue to abide by our principles in the transitional budget and beyond.
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