CONFIDENTIAL
Foreign and Commonwealth Office London SW1
Sir Murray MacLehose KCMG MBE
HONG KONG
Telephone 01-
Your reference
Our reference
Date 26 March 1974
HONG KONG BUDGET
1.
We have submitted the Budget details and your telegrams nos. 257 and 258 at official level, but not, at this moment, to Ministers. We have not thought it necessary to trouble them at this early stage in the Government; because although, as you say, the possibility of misunderstanding existed, in fact, as you also no foresaw, Haddon-Cave's speech has been largely ignored here
2.
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Moreover, as far as the UK is concerned, a gap between expenditure and revenue is perhaps not as shocking as in Hong Kong. Indeed in so far as it demonstrates your determination to press ahead with the social programme despite possible financial difficulties, it could Ife attacked about anything to do with Hong Kong, it is more likely to be because of alleged Hong Kong niggardliness in social expenditure, than because of any accusations of profligacy The Budget is therefore a useful argument against those who claim that you are not doing enough. If need be, we will use it as such.
I think, be a plus point inverse to ith it. HNG.
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Hong Kong & Indian Ocean Dept.
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CONFIDENTIAL