GR 150
IMMEDIATE
CER/CAT A
FM FCO 171310Z
SECRET
HKK 100/2
RECEN
255 1978
SECRET
INDEX
No
न्द्रि
$14
TO IMMEDIATE HONG KONG TELNO 125 OF 17 FEB 78
PERSONAL FOR GOVERNOR ONLY FROM LORD GORONWY-ROBERTS. YOUR TELMOS 156, 167, 168, 169: 1978/9 BUDGET
ஞ்
1. I AM GRATEFUL FOR THE DETAILED ADVANCE INFORMATION GIVEN
IN YOUR TELEGRAM UNDER REFERENCE AND YOUR LETTER OF 31 JANUARY
ON NEXT YEAR'S BUDGET. I CONGRATULATE YOU ON THE SIGNIFICANT
INCREASE IN PUBLIC SPENDING AND PARTICULARLY THE INCREASE
THE SOCIAL SERVICES A CONSEQUENCE OF THE VERY LARGE EXTENSION OF
SOCIAL AND OTHER SERVICES BROUGHT IN BY YOUR EFFORTS,
IN
2. THE MASSIVE SURPLUS ACHIEVED IN 1977/8 AND THE SURPLUS PREDICTED FOR 1978/9 (WHICH, AS THE HISTORY OF THE LAST FEW YEARS SHOWS, WILL ALMOST CERTAINLY TURN OUT TO BE MUCH LARGER) INDICATES
THAT THERE IS STILL A WIDE POTENTIAL IN HONG KONG FOR
REDISTRIBUTION OF WEALTH BY, E.G. AN INCREASE IN VARIOUS TRANSFER PAYMENTS AND RELIEFS OF VARIOUS CHARGES. I THINK WE SHOULD LOOK ON
THE COMING FINANCIAL YEAR AS BASE-BUILDING FOR A FURTHER MOVE
FORWARD IN CARE FOR THE POOREST SECTOR OF THE COMMUNITY, OWEN
FILES
HROGD (5)
PS/LORD GORONWY ROBERTS
MR CORTAZZI
MR MURRAY
HD/SEAD
SECRET
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