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equally undeniable that adherence to over-rigid policies in an evolving situation could result in an inadequate social and economic framework which could undermine the fabric of society. The recent recession, unfortunately coinciding with the first stage of the present Governor's extensive programmes for social expenditure (see below), has caused Hong Kong to modify its policy: the Government has, for the first time, resorted to overseas borrowing and looks certain to increase direct taxation in the next Budget. There seems a good case for carrying this process further; and in particular the proposals for higher taxation will need to be supplemented, as soon as possible, by the introduction of an income tax giving a wider spread of taxation if the tax burden is to be more fairly shared. This view seems to be gaining ground in Hong Kong but there is still considerable resistance in some influential circles.
Social
23. Past and present social policies must be seen in
their historical context. The Colonial Government
reinstated after the Second World War faced a society
in ruins and have had to grapple with, in effect, a permanent emergency situation armed with an institutional framework more appropriate to under- developed rural communities than an urban industrial environment. The fact that Hong Kong has survived at all despite a sevenfold increase in the population (partly caused by massive and spasmodic waves of immigrants), occasional periods of acute tension with China and rapid industrialisation is a triumph of ingenuity. Doubtless the willingness of the population to endure what to Western eyes appear harsh conditions is a major contributory factor: there has been little or no "reverse immigration" back to China and virtually no popular move in the Colony for its re-incorporation in China. But the commitment of
7386 D073815 140M 5/74 Cr.P.C. Gp.839/3
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/past
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