CODE 18 - 77
Mr Milton
назова
HONG KONG:
1.
SECRET
du. Fewor
HKD
Reference.
P.A fou
Vely Similar Spfemalion to those
which du. Finite put to you?
K 247
BUDGET FOR 1977/78
Dim
15/2
The time taken (4 years) for the index of real wage rates to reach its March 1973 peak has led me to look at what the budget means to the lower income groups in Hong Kong.
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2. Paragraph 15 of the Hong Kong telegram, even when allowance is made for the effects of paragraph 21(A), leads me to suppose that for each of the next 3 years there is likely to be an increase in house rents. The poor will suffer!
3. The question should also be asked whether the improvement of personal allowances and child allowances (paragraph 21(B)) will benefit anyone other than the lower middle classes.
4. The increased exemption limit for estate duty (paragraph 21(C)) will please the well-to-do.
i(c)
5. I would imagine that the benefit of the elimination of five archaic heads to the Stamp Ordinance will only be of marginal interest to the lower wage groups (paragraph 21(D)).
My major concern is on the question of rents.
6.
REOD RE* *
IN
21 FEB M77
14 February 1977
HKK 100/2
M. R.5. Hunt
HR G Hurst Overseas Labour Adviser
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