TNAG-1012-FCO40-1262-Address-by-Sir-Murray-MacLehose--Governor-of-Hong-Kong--at-t-1981 — Page 8

Mr Clift.

Reference. HK 13 13.

@

Action Bacon

THE GOVERNOR'S LEGCO SPEECH

مر

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

a)

Companies

b)

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 GDP 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);

EC Prospects

favourable. Recession bottoming out (para 24);

? Fundnir

e)

f)

MFA

g)

Это

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

Connor of money supply

Land Sites

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);

h)

Commercial Building

CODE 18.77

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

i)

Housing

as in

Home Ownership 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);

-

Home Ownership (hand Cost removed from price)

/j)

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