CONFIDENTIAL
FM HONG KONG
TO DESKBY 05140OZ FCO
TELNO 688
OF 05120OZ MARCH 92
CONFIDENTIAL
Pu
1513
INFO IMMEDIATE PEKING, UKREP JLG HONG KONG
MiB
WB look TOP COPY Q DIST?
8
143020
MDHIAN 5646
MIPT: BUDGET: COMMENTS BY LU PING
BEGINS:
THE DIRECTOR OF HONG KONG AND MACAU OFFICE OF THE PRC, MR. LU PING, SPOKE TO HONG KONG REPORTERS BEFORE ATTENDING THE MACAU BLDC MEETING IN GUANGZHOU THIS MORNING (THURSDAY). FOLLOWING IS A TRANSCRIPT OF WHAT HE SAID:
'THIS HAS ALWAYS BEEN OUR STANCE. WHEN WE SPOKE TO THE BRITISH SIDE ON THE AIRPORT ISSUE, OUR STANCE HAS BEEN LIKE THIS: WE DO NOT WANT TO INCREASE THE BURDEN OF THE HONG KONG PEOPLE JUST BECAUSE OF THE CONSTRUCTION OF THE NEW AIRPORT: NOR DO WE WANT THE PROJECT TO CAUSE INFLATION. THIS HAS BEEN OUR STANCE ALL ALONG AND WE ARE STILL MAINTAINING SUCH A STANCE. THEREFORE I FEEL THAT WE SHOULD STICK TO THE PREVIOUS BUDGETARY POLICY AS ADOPTED BY THE HONG KONG GOVERNMENT. WE SHOULD SPEND WITHIN OUR INCOME, ACT WITHIN OUR CAPABILITY, CONDUCT BUSINESS WITH WHAT WE HAVE. THIS IS ALSO STIPULATED IN THE BASIC LAW. THE FISCAL POLICY OF THE FUTURE SAR GOVERNMENT IS TO SPEND ACCORDING TO ITS INCOME. WHAT HE (THE FS) HAS PROPOSED SEEMS TO RAISE REVENUE TO COVER EXPENDITURE. IT HAS BECOME (A POLICY) TO RAISE AS MUCH INCOME AS IT IS NEEDED FOR THE EXPENDITURE, THEREFORE WE DO NOT THINK THAT IT IS IN IN ACCORDANCE WITH THE PROVISION OF THE BASIC LAW.
REGARDING THE 25 BILLION DOLLARS OF THE SAR GOVERNMENT IN 1997, THAT IS AN AMOUNT AT THE PRICE IN 1997. BUT IF YOU LOOK AT IT AT CURRENT PRICE LEVEL, 25 BILLION IN 1997 WILL BE A MEAGRE SUM, IN HONG KONG PEOPLE'S TERM - 'SAP SAP SHUI' (VERY LITTLE). IN ACTUAL FACT, IT WILL BE EQUIVALENT TO LESS THAN 10 BILLION DOLLARS AT CURRENT PRICE LEVEL'.
ENDS
WILSON
PAGE
CONFIDENTIAL
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