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Reference
5. Certainly also I agree that the lack of monetary levers is now indefensible (though the system was undoubtedly adequate until the flotation of sterling) and that the stock market boom in 1973 casts considerable doubts on the conventional wisdom of the financial secretariat. This could, perhaps, be brought out rather more strongly, as could the associated case for a central monetary authority (which I know is supported by the Bank). In fact, the paper could, possibly, be a little more positive on the economic side altogether. If we are to assume continuing responsibility for the community's affairs, it becomes all the more important that the conduct of economic policy should be beyond reproach. But can that in fact be said at the present time? For example, although there is a physical development programme (the Colony Outline Plan), it takes no account of economic considerations. Thus, plans are afoot (and have been for some years) to decant much of the growing population to the New Territories (via the New Towns, the MTR, new roads etc), but can we be at all sure that this policy will be even remotely successful when we know that no investigations have ever been conducted into such factors as industrial linkages and location requirements and so on with a view to seeing that the New Towns are optimally sited (indeed, the statistics for making such studies hardly exist)?
11 February 1976
A
GH Dart
Economists Department
CODE 18-77
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