香港總督官邸

CONFIDENTIAL

Seefidi

+13/$1979.

Das Robin

THE OFFICE OF THE GOVERNOR

FLAGSTAFF HOUSE

HONG KONG

20 November 1978

HKK 013/4

N A

RECEIVED REGISTRY NO. 51

13 DEC 1978

OFFICER

REC

RY

Action Taten

f

1. In my LegCo speech on 11 October my theme was development over the next five or six years. My object was to give a clear statement of what the Government proposed to do over a wide field, and at what cost, to achieve conditions that could be domestically and internationally acceptable, with the implication that thereafter the intense and widespread expansionary effort in the public sector could be eased.

2.

The plans I outlined coincided with those sent to you and discussed with Lord Gor onwy-Roberts in the summer. By the press and in subsequent debate the broad picture was well received. However, many Mambers and respectable public commentators drew attention to the inflationary situation into which we appeared to be moving, and pointed the finger at the expanded demands of the public sector as an element in this.

3. As you know, in my speech I drew attention, albeit briefly, to these immediate problems. I did not go into greater detail both because it would have spoilt the balance of the speech and because the details had been made well known locally by a speech given by Philip Haddon-Cave about three weeks before when the half-yearly Economic Report was published.

4. In his speech in the Officials' reply on the address of thanks, Philip Haddon-Cave spelt out the position once more, in greater detail and in the light of the latest figures. I enclose a copy of his speech and have side-lined the passages which are of

particular relevance.

RJT McLaren Esq

Hong Kong and General Department

FCO

CONFIDENTIAL

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