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Mriz 100/2
17
152606
MDHIAN 6051
SECRET
FM HONG KONG
TO IMMEDIATE FCO
TELNO 727
OF 081347Z MARCH 92
INFO IMMEDIATE PEKING, UKREP JLG HONG KONG
PERSONAL FOR BURNS, AUSS FROM GOVERNOR
PEKING: PERSONAL FOR AMBASSADOR
UKREP JLG: PERSONAL FOR GALSWORTHY
10
YRTELNO 424: HONG KONG BUDGET
TOP COPY Q DIST?
Par
913
1. SINCE 1986-87 THE BUDGET SPEECH OR ITS APPENDICES HAVE INCLUDED A MEDIUM RANGE FORECAST COVERING THE CURRENT FINANCIAL YEAR AND THE FOUR YEARS FOLLOWING. IN THIS BUDGET, THIS PERIOD WAS EXTENDED BY AN EXTRA YEAR, TO COVER 1996-97, AND MORE PROMINENCE WAS GIVEN TO THE EFFECT OF THE VARIOUS MEASURES ON THE RESERVES OVER THE PERIOD TO 1996-97. THIS SEEMED SENSIBLE IN THE LIGHT OF THE AIRPORT MOU, AND WAS CONSIDERED NECESSARY INTER ALIA TO EXPLAIN WHY OUR PROJECTED RESERVES OF AROUND HKD99 BILLION IN 1992-93 ARE NOT EXCESSIVE.
2. WE HAVE THE PROBLEM IN THE BUDGET, AS IN OTHER PUBLIC DOCUMENTS, THAT MANY DIFFERENT AUDIENCES READ IT. WE CANNOT NECESSARILY KEEP THEM ALL HAPPY. WE HAD NEVERTHELESS HOPED THAT THE CHINESE WOULD BE REASSURED BY OUR EVIDENT INTENTION TO PLAN FOR A SUFFICIENT CUSHION TO ENSURE THAT WE CAN LEAVE THE HKD25 BILLION IN 1997, AS AGREED IN THE AIRPORT MOU. IF THE CHINESE ATTEMPT TO EXPLOIT THE SITUATION ON THE LINES YOU SUGGEST, WE WOULD HAVE TO RESIST THIS FIRMLY.
3. YOUR COMMENT ON 'COMMITMENT' NOTED. AS YOU IMPLY, THE PASSAGE WAS AS CAREFULLY WORDED AS POSSIBLE.
WILSON
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