CONFIDENTIAL
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14 February 1977
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CP Haddon-Cave Esq CMG
Financial Secretary HONG KONG
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DEDISTRIBUTION OF INCOME
1. At a meeting last week of our Standing Committee to monitor the implementation of the Planning Paper (the minutes of which I will be sending to the Governor), the question was raised of the extent to which the Hong Kong Government's policies, particularly budgetary policy, has brought about a redistribution of income. It was agreed that if any informa- tion is available in this subject it would be useful to the Committee's future work. Ministers are, of course, interested in this matter since, while it may not have been explicitly stated, the object of the programme of measures set out in the Planning Paper and now being put into effect is, as we see it, to bring about a less uneven spread of income in Hong Kong than is widely believed to be the case at present. Incidentally, David Lipsey, the Secretary of State's Political Adviser, told the Standing Committee that when Mr Crosland was at the Department of the Environment he took a close interest in the redistributive effects of economic policies and always wished to have such information to hand when
While he has not considering alternative courses of action. specifically raised this point with regard to policies in Hong Kong, it would be helpful if we were to be in a position to provide him with the necessary information.
2.
We should be most grateful if you could arrange for us to be provided with whatever statistical information may be available, both on the present distribution of income and on the likely impact on it of existing and future policies, including your forthcoming budget.
3. You may already know that I shall be coming to Hong Kong again from 20 to 30 March. I look forward as always to having a good talk with you.
SC:
PS/Lord Goronwy-Roberts Mr Murray
Mr Lipsey
Mr Smith (Econ D)
Mr Maud (FRD)
JAB Stewart
CONFIDENTIAL