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10.
Provisions on the economy, (balanced budget, low tax policy)
We are well aware of its criticisms that some provisions in the
draft (eg on a low tax policy, a balanced budget and open financial
and monetary policies [Articles 105, 107 and 110]) are inconsistent
with the Joint Declaration provisions stipulating that the handling
of policies in these areas will fall within the autonomy of the
Hong Kong SAR Government. There is a cogent argument that it is
inappropriate to enshrine such provisions in the Basic Law. We feel
sure that the Chinese authorities will take account of criticism of
these articles. One possibility that has been suggested is that
these provisions should be drafted as guidelines rather than as
legally binding stipulations.
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