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Wednesday, February 24, 1971

He thought it was true that Hong Kong's present oconomic prosperity and financial strength had led both government departments and subvented

organisations to "think moro largely." Financial restraints did tend to

loosen in such circumstances, and it became more difficult for a Financial

Secretary "to say about any single relatively modest increase in expenditure,

and some not so modest, that wo cannot afford it."

The principal field for the proposed heavier outlay in the next

financial year was exponditure on public works, planned to go up from a

revised figure of $396 million this year to $530 million in the next.

Sir John explained that this was partly due to tho greater incidence

of increased costa as old contracts were completed, and new ones lat, though

the full effect of price increases would not even then be felt. Also, two

major projects the Kai Tak runway extension and the raising of the Plovor

Cove Dam were getting properly into their strido.

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