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financial haven, there is scope for considerable development in the field of
financial statistics, eg flow of funds. Thirdly, the GDP figures are derived
expenditure, as compared with an income or output approach.
on a weak basis
CONCLUSION
13.
Whilst it would not be too perplexing to understand any local short-term
welcome to this Budget, it is one which is somewhat difficult to defend when
looked at in terms of economic intellect and equity. Conceptually it was
outdated and lacked an overall theme; it did little to remove doubts as to
lack of appreciation of the relationship and use of Budgets to achieve
economic and social objectives.
14.
I would accede to the view that whilst there has been some progress
we still have some considerable way to go in bringing Hong Kong into the
second half of the 20th Century on its economic thinking. I do wonder
therefore if this might be assisted by a re-issue of the Lennox Boyd
instruction of 14 January 1958 (copy attached) amended appropriately.
Economists Department
Foreign & Commonwealth Office
25 March 1977
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