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RECORD OF A MEETING HELD IN GOVERNMENT HOUSE ON FRIDAY, 21 MAY, 1976 AT 11.15am
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Present:
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сл
HICH 026/508/5
H.E.,
Mr. Cortazzi,
CS,
Ag. FS,
SHA,
S for E
S for H,
S for SS,
SNT
S for S,
DFS,
SCS,
S for A,
PA, DHA, CAC, PS/GH.
bolelii
In the course of discussion the following
points arose:
a) Mr. Cortazzi outlined the political pressures on Hong Kong to which Ministers are subject, and the many different economic and political factors which made Ministers particularly sensitive to them now and probably
for some time to come. He believed that if a confrontation
were to be avoided between HMG and the HK Government
Ministers would have to be able to point to progress in
Hong Kong at a greater speed than the HK Government had hitherto found acceptable.
b) In answer to Mr. Cortazzi Ag. FS said that in his
personal view the upper limit on standard rates of tax was
20% (as opposed to 15% personal and 17% profits at present).
DFS said that many factors had to be taken into account
including the extent to which the public sector drew off
SECRE
!
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