A
CONFIDENTIAL
Revenue and Expenditure
Sterling Assets
Our reason is that they are able to manage without; if
they run short of development finance, our general attitude
has been that they should raise local loans (the public
debt is very low) or increase taxation. But since we
provide no aid, we cannot exercise control over their
financial policies; the ultimate responsibility of the
Secretary of State is in practice purely formal, and they
are to all intents and purposes financially autonomous.
28.
Annual revenue and expenditure have nearly doubled
since 1963 to £170m. and £139m. respectively in 1969/70.
There was a budget deficit in 1959/60 (£2.8m) and in
1965/66 (£8.6m) but in all other years since 1947 surpluses
have been realised.
A surplus of £9 million is budgeted
for in the current year.
29. Hong Kong is the largest single holder of sterling
assets. These assets now stand at £498 million and
comprise official funds (£278 million) and private funds
(£220 million) held for residents and banks.
SOCIAL SERVICES
30. The great post-war increase in Hong Kong's population
(largely by immigration from China) has involved a
formidable programme of expansion in the social services
- housing, health services, education, water supplies.
Although massive advances have been made in these fields
in the last twenty years, a great deal remains to be done and there are some formidable problems (not confined to
financial considerations) involved.
Hong Kong Department
August, 1970
13- CONFIDENTIAL