Mr Smith
RECEIVED IN. Good gelton
REGISTRY No. 51
10 MAY 1974
HKK5/20
HONG KONG ECONOMIC BACKGROUND
FRIOS AKI
19
AA Budger Lite
In reply to your minute of 6 March and subsequent discussions I return the 'Economic Background' paper to the 1974/5 Hong Kong budget, together with the similar economic survey produced last year. I also return Mr Holland's minute of 6, March and Mr Dart's letter of 22 March to Mr Holland, with enclosures.
2.
My comments on this year's economic survey are set out below. They are broken down into short sections or paragraphs with side. headings. This should facilitate selection of items which you or Mr Holland may wish to take up personally. Apart from my note below you may also wish to refer to the Senior British Trade Commissioner's letter of 1 March to the DTI of 1 March (item 7 on file HKK 5/20) and also to the Governor's contribution and the 'open letter' in the FEER's review "Hongkong '74" appearing on 25 March. To facilitate liaison with HKIOD in this regard I am copying this: minute to Mr Goodfellow as well as to Mr Franklin, who now takes over Hongkong from me within Economists Department.
General scope of survey
3. This year's 'Economic Background' paper is longer than the previous year's equivalent (37 pages instead of 16). It also con- tains more detailed statistics.' But surprisingly the survey appears less comprehensive. Several useful indices and comments about particular sectors of the economy no longer appear. There is no discussion, for example, of the external trade balance or of the tourist industry. The general impression is that much of the wood can no longer be seen because of the trees.
4. A very disappointing aspect is that almost all the statistics and economic comments are based only on the first 9 months of 1973. This has made comparison with previous years difficult and perhaps accounts for the omission of certain indices previously included. (see further notes below). Last year, however, the full year com- parisons were given even though the paper was dated 31 January 1973. Since the survey is not issued till the Financial Secretary's budget speech at the end of February, it seems unfortunate that the deadline was not met this year with a better coverage for the calendar year.
General presentation
5. The general printing and layout is less attractive this year. Last year's two-colour printing and the numerous marginal charts and diagrams have altogether disappeared. This may not involve much loss, of substance but the document this year is less readable and less imaginative in presentation.
CDP and GNP
6.
There is a breakthrough this year in the provision of GDP statistics at constant (1966) prices. For the first time the
/real
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