TNAG-1221-FCO40-1531-Annual-address-by-Sir-Edward-Youde--Governor-of-Hong-Kong--t-1983 — Page 40

14.

from

The world economy is likely to continue to improve

1984, and Hong Kong should continue to benefit improvements in the economies of our major export markets. But our economy remains vulnerable to external factors.

15.

I shall not deal here with the question of the

exchange value of the Hong Kong dollar. But this does not mean that I do not understand the anxieties of the community on this

issue. On the contrary, for all of us in Government who deal

with these matters, it is an issue of daily attention, and

constant concern. But because of the immediate effect on

sensitive financial markets of everything we may say and do;

because we must not mislead as to what is within the power of

Government to achieve and what is not; and because we must be

as sure as we reasonably can of the consequences of any action we might take, we must proceed with care and caution. I shall,

therefore, do no more than repeat once

I do again that

believe that the erractic fluctuations of recent weeks reflect the economic and political realities of the situation in which we find ourselves, nor the strengths of our economy and Our

society.

16.

far

(b) Management of the Public Finances

not

As regards the public finances, revenue collections so this year have been lower than expected, due mainly to the depressed state of the property market and the resulting shortfall in the yields from land sales. The higher growth rate of the economy which we now expect should bring about some improvement in the situation towards the end of this financial

Fortunately, total

is expenditure

also lower than

estimated, because of a continuing reduction in tender prices for large capital projects, reduced expenditure on land resumption, and tight control of recurrent expenditure. As a result it seems likely that the deficit on General Revenue Account will be in the region of the budgetted $3.2 billion.

year.

6

/17. The