Hong Kong Chief Executive Lauds SAR's WTO Opportunity

by Mary Swire, Tax-News.com, Hong Kong

02 January 2002

Hong Kong Chief Executive Tung Chee-hwa warned Hong Kong people yesterday not to underestimate the economic difficulties lying ahead, but called for compassion and a common vision to build a better future for the SAR in the new year. Speaking at the start of a charity walk on New Year's Eve, Tung said the SAR would suffer from the 'unprecedented' impact of the bursting of the bubble economy, internal economic restructuring and the global economic downturn.

'Adversities are part of life. As society evolves, we are bound to be faced with challenges ... I am well aware of the fact that many Hong Kong people are under ever increasing pressure,'' he said. Tung said he believed the SAR - with its strategic geographic location, sound legal system, business-friendly environment and its position as a financial, trade, tourism and logistics hub - would still prosper. 'Let us believe in ourselves and establish a clear positioning for Hong Kong ... Let us stay united and give full play to our innovation and the entrepreneurship we have long taken pride of,' he said.

The Chief Executive also urged people to make use of the business opportunities provided by the mainland after its entry into the World Trade Organisation. 'With the full support of our country and the enormous opportunities brought about by China's opening-up and its admission to the World Trade Organisation, we shall overcome our economic difficulties and scale new heights,' he said.

Meanwhile, the government announced that expenditure from April to November was $154.6 billion and revenue $99.7 billion, resulting in a deficit of $54.9 billion. A government spokesman said revenue for the rest of the year would be much lower than expected, despite a surplus of $8 billion in November. The fiscal reserves were $375.3 billion at the end of November.

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