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D G Jeaffreson Esq JP
Secretary for Economic Services Government Secretariat HONG KONG
HKK. 121
233-43772
Ni ny
161k/1
25 November 1977
363
R
t.
418
1. We were a little surprised by a press report of 12 November on your speech at the opening of a seminar for financial journalists.
2. You are quoted as saying that the EEC textile proposals, if agreed "would result in a reduction of our increase in public expenditure of 2 or 3% a year". Our surprise stems from the fact that the Financia? Secretary said exactly the opposite to John Stewart during his visit last month. Indeed, Mr Haddon-Cave said there would be, in the event of a recession, an acceleration of the building and public works programmes and inevitably larger demands on public assistance. He went on to say that any additional funds would, in the short term, be found from reserves but that the Hong Kong Government would have no hesitation in borrowing if necessary. 3. The Governor made much the same point in his meeting this week with Lord Goronwy-Roberts and I can only assume that you have fallen foul of
misquotation.
4. In order to put our records straight I shall be grateful to know what you did say.
J Thompson
Hong Kong & General Departi
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