18.
ام
Equally, a more relaxed attitude towards borrowing
would be appropriate. This is particularly the case where
external borrowing is concerned since this would not immediately affect the balance of payments. And it is particularly the case also on borrowing for capital projects: at the present time the sur-
plus on recurrent account still finances more than 30% of the government's expenditure on capital account (though this propor tion has declined significantly, from about 75% in 1971). Fur- thermore, increased public expenditure, even when it proceeds at a faster rate than the gross domestic product, will not of necessity impair the growth prospects of the export sector. Quite apart from the situations where public provision/aan ber made for goods and services that would in any event be supplied
there
plenty a bare forthis
might be
privately (as is often the case in the education and health
fields in Hong Kong), there is the point that the labour market
petelisely stuck
is now
is oser-viaok-for-come-time/(with wages increasing less rapidly than profits as a result). This slackness is likely to remain, not only because of the anticipated slower growth or the econom; but also because unemployment seems likely to persist, given that the population of working age is still increasing by about 3-19% a year).
Conclusion
37.
United Kingdom
Aâmittedly, an increased contribution for defence would not be welcomed by the community in general, and the presenta- tional aspects would need to be handled with care, by both the
and the Hong Kong governments. In the eyes of many, Hofg
Kong has taken something of a battering in the last 3 years, and
there are doubtless a large number of families that have had to
make great personal sacrifices in their living standards (though losses of savunfo on the stock market, through infla- tion and now through the recession). For many, Britain is seen
as being out solely to pursue its own interests, particularly
in the light of the 1972 sterling crisis and the implications
of this for the TeÄulVoß, In the predejil ungumio olimate, il
is unlikely to see any reason for contributing substantially
more to what it rogirda as Britain's, rather than Hong Kong'a
garrison, especially when, again as it sees the position, this
is quite simply because the United Kingdom can no longer afford
its upkeep. But it needs to be borne in mind that, essentially.
the local community is largely preoccupied at the present time
with making ends meet and is likely to become restless only if
existing household income problems are further exacerbated on any significant scale. This/hardly conceivable in the context
of the Defence
Costs Agreements as face..
NOTHING TO BE WRI
"N IN THIS MARGIN