TNAG-2792-FCO40-4031-Relations-between-Hong-Kong-and-China-1993 — Page 54

GF 323

CONFIDENTIAL

-

- 3

機密

(9)

(10)

and

regulatory

in

nature.

An across-the-board

same mode as the one

not envisaged.

The

to bring down the

austerity programme in the

implemented in 1989 is

government's stated intention is

rate of economic growth towards, but not below, the

trend rate of 8-9% per annum.

now, the

restraint measures seem to have achieved some initial

success on several fronts. Specifically, the Renminbi

exchange rate has rebounded and stabilised at around

Rmb 8.7-8.8 per US$.

The growth in residents'

Up

to

Bank loans

deposits with banks has re-accelerated.

outstanding have fallen back. Property speculation

But it is also clear that the

has subsided.

to

adjustment in overall terms has been only gradual, and

the measures have yet

produce all the intended results. A longer period of observation is necessary for identifying the fuller effects of the "16-point

plan" (paragraphs 12 and 15).

However,

In the first half of 1993, Guangdong continued to be

one of the fastest growing provinces in China. Its

gross domestic product grew by 21% and its gross

industrial output by 36.2%, both in real terms. These

growth rates were much faster than the corresponding

national averages of 13.9% and 25.1%.

Guangdong's inflation rate, at 16.0%, was also higher

for China as a whole

(paragraph 16). As to foreign direct investment, the

pledged

to

US$17.7 billion and US$3.8 billion respectively in the

first half of 1993, representing increases of 169% and

102% over a year earlier (paragraph 17).

than

that

of 10.5%

and

On Hong Kong

half

realised

values

amounted

China trade relations, in the first

of 1993 China remained Hong Kong's largest

trading partner.

In the same period, Hong Kong was

largest trading partner, only

China's

second

CONFIDENTIAL

機密