SECRET.
Revenue and Expenditure
Sterling Assets
grants towards higher education projects (the two universities
and technical education) and a loan and grants for the
development of Kai Tak airport.
In addition, we have provided
£400,000 for the purchase of equipment for 4 new technical
institutes. It is a sore point in Hong Kong that since 1945
we have not felt able to make regular aid allocations to the
Colony. 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 purpose financially autonomous.
34. Annual revenue and expenditure have more than doubled
since 1963 to £214m. (est.) and c. £200m. (est.) respectively
in 1971/72. 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.
year 1969/70.
There was a surplus of £30 million in the
35. Hong Kong is the largest single holder of sterling assets. “
These assets stood at about £535 million at the beginning of
1971.
SECRET
:
/SOCIAL SERVICES