CONFIDENTIAL
no more specific indication of the areas likely to be affected by "re-phasing, though it is not difficult to forecast that housing, the new towns, and projects in the transport field could be among the principal targets.
5. The Governor's letter is no more than a warning that further action is likely to be required to reduce domestic demand. I doubt whether there is anything useful we can say in reply until we have some more specific indication of which public sector projects are likely to be affected. It is possible that we may then wish, to question the Hong Kong Government's priorities. suggest that the situation described in the Governor's letter might be discussed at this week's meeting of the Standing Committee.
I
Ruaughn
RJT McLaren
12 December 1978
Hong Kong and General Department
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Mr Haley Economists Department
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As
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the xmas break and conclude that the Governor's helpful letter.
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want to know the Governor's thoughts about
be decides that re-phasing
copies could be submitted.
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CONFIDENTIAT
we fel
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20/12