Mr Smith (SEA)
HONG KONG: BUDGET
1.
CONFIDENTIAL
RECUPAD IS R2Y No.
4 APR 1977
14KK, 100/2 HKK.
I discussed at some length with the Governor during my recent visit to Hong Kong our objections that the recent budget speech did not contain indications of the philosophy and long-term strategy in fiscal and social matters for the Hong Kong Government. The Governor's reply was that the system in Hong Kong is different from that in Britain and most of the large industrialized countries of the world. The social and economic policies and the plans of that Government are set out in the Governor's speech at the opening
This is a of the Legislative Council in October of each year. different and very much more complete account than is, e.g. the speech am the Throne in the British Parliament. speach is debated at length by LegCo and by the various organs of opinion during the five months between the opening of LegCo and the delivery of the budget speech. The budget speech is, therefore,, a precise financial statement of how the plans laid down in the Governor's speech and amended after the debate in LegCo are to be accomplished,
The Governor's
2. I think that this is a fair point and one which I, with my Colonial Service background, should have taken aboard before. shall be grateful for your comment.
I
30
4 April 1977
Co 1
Mr Cortazzi
Mr Murray o.r. Mir Milton
pp J A B Stewart
Hong Kong Department
32)
K
CONFIDENTIAL