TNAG-1603-FCO40-2210-Future-of-Hong-Kong-annual-reports-to-Parliament-on-Hong-Kon-1987 — Page 256

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50

sector

interest

of private

In the property market, demand for most types

property has been strong this year reflecting а revival of

Following a strong

in

property investment generally

in the property market

in

1985, prices

prices and rentals held

recovery

firm, while trading in property was active

(c)

Trade relations

51.

Hong Kong's longer term economic performance remains

dependent on external forces

The threat of protectionism in Hong

Kong's major export markets,

remains. While prospects for

longer term given China's

particularly the United States,

exports to China

modernisation

appear good

in

the

programme, Hong

Kong's

domestic exports and re-exports

to China have been affected by

tighter Chinese control on imports since April 1985.

52

to

The Hong Kong Government will continue to make every effort counter protectionist pressures and to defend Hong Kong's trading

The past year has seen the satisfactory conclusion of several new agreements of vital importance to Hong Kong's textiles

extension of the

interests.

and

garments

industries

The se include the

Multi-Fibre Arrangement until July 1991 and bilateral agreements

textiles with the United States and with the European Community.

53.

on

As from 23 April 1986 Hong Kong has been a separate contracting party to the General Agreement on Tariffs and Trade and, in that capacity, has supported the launching of the Uruguay round

of multilateral trade negotiations in November. In the forthcoming

particular support to efforts to

bring about trade liberalisation and improved market access: it has

considerable interest in negotiations on trade in services, a sector

of growing importance to the Hong Kong economy.

discussions

Hong Kong

will lend

(d)

Public Finances

54.

year

three

years

For

the

The Hong Kong Government budget returned to surplus in the

financial

1985/86 after

of deficits.

financial year 1986/87, higher yields from earnings and profits tax

and the income

from land sales will also be higher.

are

expected,

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