11-MAR-1993 11:35
CAB
+ 852 840 1528
P.03
injected into it. Although we support the setting up of a pension fund, it does not mean less commitment on the part of the SAR Government. This is not our goal. Even without this pension fund, we will pay out pensions accordingly after 1997. We support the setting up of a pension fund just because we want to make you civil servants feel more at ease. We have to fight for it. We hope you would fight for it too. Shall we fight for it together? ("Yes," the group said.)
Fighting for a reserve fund
Q:
A:
The pension fund involves the economic development of the future SAR.
If HK's economy What are your comments on HK's economy after 1997? is not good, the pension fund will become a problem.
You don't have to worry about this. The most fundamental question is whether HK's economy can continue to develop and whether HK's prosperity and stability can be upheld. This on the one hand is HK's own problem On the other hand, it involves economic development in the mainland. The economies of the mainland and HK have become more and more closely knitted. Many HK companies have invested in the mainland. In the past. many prominent HK businessmen never invested or set up factories in the mainland. They just donated money. situation has changed over the past year. Some of them have invested $10 billion in less than half a year. Others have made substantial investment in Shenzhen, Shanghai and other cities.
The
there
We have confidence in HK's economic development after 1997. This is because we have confidence in China's economic development only if we continue with the open door policy. I think some people have not been to the mainland for quite a number of years. If you come to visit Peking now. you will see that things are very different. Besides, the SAR Government needs to get fully prepared. This explains why we have to put up a fight with the British in order to get bigger reserves for the SAR Government. This is mainly because in considering this. the pensions issue has also to be taken into account. We told the British that pension pay-outs would be an astronomical figure. If the British do not leave enough Reserves for the SAR Government, will be a problem in paying pensions in the future. This is why we have to fight. We fight to every penny during talks on the airport plan. We were not fighting for ourselves. We are not going to get a penny out of it. We are fighting for the HK Government, "caking into account of your pensions. We finally get a promise of $25 billion in reserves by the conclusion of the Airport MOU. At present, HK's fiscal reserves exceed $100 billion. The figure for last year was over $20 billion. The British Government has promised to leave exactly $25 billion by 1997, not a penny more. However, we do not rely only on this $25 billion. We still have the Land Fund, that is the revenue from land sales. It is estimated that the amount will accrue to nearly $70 to $80 billion by 1997. The sum of the fiscal
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