TNAG-1361-FCO40-1807-Hong-Kong-Hansard-reports-and-minutes-of-the-meetings-of-the-1985 — Page 154

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

G.F. 316

Sir,

高度機密(Mdi

ⱭBHISSVTONO

I am going to change the presentation of my speech this year by first setting out the overall picture. This will establish the background for my subsequent comments and proposals. I hope that Members and the public will find this helpful.

2.

On General Revenue Account we last enjoyed a budget surplus in the financial year 1981-82.

3.

In that year

land sales revenue was $8.9 billion itself $1.8 billion less than in the previous year.

4.

-

Only four years later in 1985-86 revenue from this source is unlikely to exceed $1.7 billion, which in my opinion may establish a trend for future years. This is of course a view, not a calculation; but we look as far ahead as possible in

our budgetary processes.

5.

Commerce and

In 1982 and early 1983 Hong Kong in addition suffered from the worst world recession since the 1930s. Employment and real wages fell. Property values slumped. industry staynated.

Peking and

There then followed the negotiations in

their consequential effects on confidence and

investment. Happily this issue has now been cleared by signature of the Joint Declaration.

6.

It is thus not surprising that since 1981-82 major budgetary adjustment has been necessary. The Government has remained steadily and visibly on course towards a return to

高度機密UNCLASSIFIED

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