TNAG-1012-FCO40-1262-Address-by-Sir-Murray-MacLehose--Governor-of-Hong-Kong--at-t-1981 — Page 70

CODE 18.77

.

Mr Clift

THE GOVERNOR'S LEGCO SPEECH

1.

Referend O13/2

EXCHORD ZA MEISTRY NO. 51

15 OCT1981

RADEX

P

No C.S.E. FAM

13/10

13/10.

Mr Friar and I have glanced through the speech and picked out the following points of note:

a)

b)

Companies

Bills to amend Banking Ordinance and Deposit-taking Companies Ordinance to extend system of supervision to operations overseas (para 7);

Revenue

Estimate of $7,800 m will be surpassed and, while expenditure expected to exceed estimate by 10%, there will still be a large surplus (para 12);

c)

Economy 1980-81

d)

-

1980 GOP up 10%. Same expected this year. Exports will be 7% rise in real terms to 1981 (15% in re-exports)(paras 15 - 19)

Inflation

in consumer prices at 14% (para 23);

e)

EC Prospects

favourable.

Recession bottoming out (para 24);

f)

MFA

'a dark cloud'. Cannot predict outcome (para 25-6);

g)

Land Sites

h)

Expect to sell 100 ha in 1981-82 and 1982-83. Future development will be helped by knowledge of plans 'immediately north of the border' (paras 35-37);

Commercial Building

Expect increase of £2.9 m sq metres floor space 1981-83, or 25% (para 38);

i)

Housing

=

Land value not included hereon in valuing public housing for rent: should halve prices. Produced record 37,600 flats in 1980-81 in the public sector; 21,500 in the private sector, a reduction on previous year. Current shortage 260,000 flats (paras 40-46). Housing now too expensive for many greatest single cause of unhappiness in Hong Kong (para 50);

(j)