COMMENTS:
CONFIDENTIAL
020641
MDHIAN 9:
AS
(A) IF ''STRIVING TO'' IS INSERTED BEFORE ''AVOID DEFICITS' WELL AS ''ENSURE THE BUDGET IS COMMENSURATE WITH GDP GROWTH'', THEN THE FIRST PART: I.E. ''SHALL FOLLOW THE PRINCIPLE OF KEEPING EXPENDITURE WITHIN THE LIMITS OF REVENUE'', READ TOGETHER WITH THE REST OF THE AMENDED TEXT, CAN BE INTERPRETED AS A GUIDELINE RATHER THAN A REQUIREMENT: THIS IS PROBABLY WHAT THE BLDC SPECIAL GROUP HAD IN MIND WHEN THEY SAID THAT THERE WAS ALREADY SUFFICIENT FLEXIBILITY IN THIS ARTICLE (OUR TELNO 4181):
(B) WE SEE NO DIFFICULTY IN THE SAR DELIBERATELY INTENDING THAT ITS BUDGET SHOULD NOT/NOT BE COMMENSURATE WITH THE GDP GROWTH RATE IN ANY ONE YEAR: THIS IS OF COURSE PART OF THE SAR'S FINANCIAL AND ECONOMIC AUTONOMY.
7. GRATEFUL FOR CONFIRMATION DESKBY 03010OZ THAT YOU ARE CONTENT WITH THE SPEAKING NOTE AT MIFT. WE SHALL THEN FAX THE CHINESE TRANSLATION TO PEKING.
WILSON
YYYY
DISTRIBUTION
60
MAIN
57
.HONG KONG AGREEMENT
.(RESTRICTED>
LIMITED
HKD
HD/FED
RESEARCH (FE)
PUSD NEWS D
PS/MR MAUDE
PS/LORD BRABAZON
MR GILLMORE
MR MCLAREN
ADDITIONAL
3
MR WHOMERSLEY LEGAL ADVISERS MS BARRETT LEGAL ADVISERS
MR FIFOOT LEGAL ADVISERS
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CONFIDENTIAL