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But the Hong Kong Government has made

outstanding progress in many fields over the

past few years. The British Government both

the present one and I believe the last one is

well aware of the progress made in Hong Kong

and on the whole is well satisfied with the rate

of progress in the areas you mention. You must

relate progress here to the almost complete lack

of natural resources coupled with the constant

inflow of people from China and more recently

Without any doubt, there has been great

improvement in the social conditions over the

past few years. These improvements have to be

achieved step by step and they compare very

favourably with conditions in other parts of

Vietnam.

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Asia and indeed with much of the rest of the

world.

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5)

Should Hong Kong change its taxation policy to obtain more from profits and raise income (sic) tax in order to pay for more social services?

A. With its lack of natual resources, Hong Kong has

to depend very much on investment to provide

jobs for its people. Therefore, it has to keep

its policies of comparative economic freedom

and low taxation so as not to discourage

enterprise and foreign investment. As you will

know the rate of expansion of social services

is not entirely a function of the amount of

money available. People have to be trained,

systems developed and so forth. There has to

RESTRICTE

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