XN000022-1997-01-21 — Page 4

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Customs' response on normal inspections on PLA

Replying to press questions on whether the PLA would be subject to normal customs inspections on entering or leaving Hong Kong, the Commissioner of Customs and Excise, Mr Lawrence Li Shu-fai, today (Tuesday) said that the present law is clear that anyone who enters or leaves Hong Kong is subject to customs inspections unless he is exempted from such control (for example those who are accorded with diplomatic privileges) under the law.

"At present such exemption does not apply to the PLA under the current legislation," Mr Li said.

Following the handover the arrangements in this respect would depend on what the law says at that time, he added.

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Business as usual for HK's budgetary and fiscal planning

The Secretary for the Treasury, Mr K C Kwong, today (Tuesday) said the prudent fiscal policies that had worked so well in the past had continued to guide the formulation of the Budget in the forthcoming year. They would also continue to guide the formulation of future Budgets after the transition.

Speaking to a visiting delegation from the French Bankers Association, Mr Kwong said he was confident that as far as Hong Kong's budgetary and fiscal planning was concerned, it would be business as usual.

He said the reason was simple. "We have our fiscal policies enshrined in the mini-constitution of the future Hong Kong Special Administrative Region - the Basic Law." he said.

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"Article 107 of the Basic Law states that 'The Hong Kong Special Administration Region shall follow the principle of keeping expenditure within the limits of revenues in drawing up its budget, and strive to achieve a fiscal balance, avoid deficits and keep the budget commensurate with the growth rate of its gross domestic product.'