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T
7.
far leads to hell rather than heaven, and if we tread
cautiously for fear of brimstone I think we are wise to do so.
But these breaks with tradition are of real significance
and will give greater room for manoeuvre in future.
10.
For my part I am convinced that Hong Kong
must establish a rather but not excessively higher level of
revenue of all sorts if it is to do the things that need
There is danger in leaving them undone and in
doing.
the Government thus losing credibility, just as there is
danger in retarding the growth of the economy by clumsy or
abrupt fiscal policies. In 1972 and '73 we had built up the
public expectation and enthusiasm necessary to carry through
tax increases in '74, but with the oil crisis around us,
and uncertainty and recession ahead, we were only able to
edge forward slightly in '74/75 and make a rather bolder
move in '75/76. Though all to the good this is not enough,
and the Financial Secretary gave notice in his budget speech
of a need for a further $500 m. of resources in '76/77.
11.
Meanwhile this Government faces a period
of acute financial stringency in 1975/76, and in '76/77 too
unless, contrary to all expectation, the economy picks up
so fast as to make it possible to obtain very significant
additional resources. We can continue to expand housing and
the New Towns and related communications, and the forces
/of law and order
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