3 323
GOVERMENT HOUSE HONG KONG.
FRI 15 JAN 93 49:30
Intended applied sala
07
CONFIDENTIAL
to surviYC 1997 were being made. The same other dicoiplined services. The Governor was being dome on localisation and
There needed
be a balance het weet
WOIK
succession.
#O
Buicker localisation and not grading the competence of the disciplined forces. The task involved not only
pensions
servants'
ruej ved curious
the top poata, but also changes down the ayatoma. On the Governor said ho appreciated civil Concern. given that the conceza arose from Lo pensions after 1997,
iL was the Chinese, (zhould encourage civil In any casc we has Whether after 1997 the
use the reserve
that
Jorvants LO demand funding. started discussione at JLG SARG thought 1= sensible, safeguard pensions was a separate matter.
Budact
(1)
tc
Mr Arculli said they were digturbed with speculations sizeable surplus. They wished to put forward spending proposals that w*** non-inflationary, and that gave help to deserving causes. These proposals Included MOIC funds for retraining and increased allowances for trainees, sery dea for the disabled and the mentally handicapped, elderly services, increased Assistance under the public assistance scheme, more funds for research ▲ development, urban renewal and rehousing pcople thus affected, and reducing profit tax by 12. The Governor said he intended to continue to be conservative with fiscal policies. While he was in favour of accumulating purpluses unnecessarily, in using surpluses it vas Emportant to "capitalise
not to increase recurrent expenditure. Mc Arculli 3aid one capital project was to set up a fund for tha compulsory retirement scheme.
rot
them and
CONFIDERIMAL #B
機密
13
PG.14.