TNAG-2145-FCO40-3064-Hong-Kong-Port-and-Airport-Development-Strategy-(PADS)-1990 — Page 93

1990-10-31 23:21 G.1.5

2

P.00

established themselves in the Territory

than in

any

comparable period since 1980. In addition, a considerable

number of overseas securities companies and new regional

headquarters have been established during this same period.

4.

remain as

mention.

to

1988.

One dark cloud on the horizon is inflation.

concerned about this as anyone in

of

I

this Chamber.

But there are two positive factors which I would like to

First, we are currently experiencing a cyclical

slowdown following strong growth for

growth for the period from 1986

As a consequence, our largely domestically

generated inflation had been edging downwards since the

latter part

last year, and this trend would have

continued but for the surge in oil prices that We have

experienced recently. Secondly, although the recent

depreciation of the US dollar may well add

add pressures on

import prices in due course, there could well be some

relief flowing from the slowdown in the rate of inflation

in China and the present relatively stable world commodity

prices for non-oil products. I cannot this afternoon offer

too much by way of comfort on the inflationary front beyond

saying that if we are not hit by further adverse

developments, it is likely, in my view, that the downward

trend in inflation will be resumed next year.