FRIDAY, FEBRUARY 7, 1975
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BUDGET
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''NO SOFT OPTIONS THIS YEAR
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THE SECRETARY FOR HOME AFFAIRS, MR. DENIS BRAY, PREDICTED TODAY THAT THE FORTHCOMING BUDGET WOULD ENABLE THE GOVERNMENT AND THE COMMUNITY TO CONTINUE THEIR SOCIAL AND ECONOMIC DEVELOP- MENT IN DIFFICULT CIRCUMSTANCES.
SPEAKING AT THE KOWLOON NORTH ROTARY CLUB LUNCHEON, MR. BRAY SAID THAT THERE WOULD BE 'NO SOFT OPTIONS" THIS YEAR. HONG KONG DID NOT HAVE ENOUGH RESERVES TO GIVE AWAY TAXES AND KEEP SPENDING ON SOCIAL SERVICES.
AT THE SAME TIME, WE CANNOT JACK UP TAXES TO DO ALL THE WONDERFUL THINGS WE ARE SO OFTEN CRITICISED FOR NOT DOING. NOR CAN GOVERNMENT EXPENDITURE BE SLASHED WITHOUT STOPPING DOING SOME OF THE THINGS PEOPLE EXPECT THE GOVERNMENT TO DO,+ MR. BRAY SAID.
HONG KONG. HE ADDED. IS A LITTLE PLACE IN A BIG ROUGH WORLD GOING THROUGH AN ECONOMIC RECESSION. WE ARE DOING REMARKABLY WELL IN SUCH A SITUATION.*
REFERRING TO RECENT MISCONCEPTIONS ABOUT THE BUDGET. THE SECRETARY FOR HOME AFFAIRS SAID THAT PUBLIC FINANCE SEEMED TO DE ONE SUBJECT ON WHICH +PEOPLE HAVE THE ODDEST IDEAS+.
IT IS A BIG AND DIFFICULT SUBJECT, HE SAID. MOST PEOPLE HAVE SOME UNDERSTANDING ABOUT THEIR OWN FAMÍLY FINANCES. +BUT WHEN IT COMES TO PUBLIC FINANCES WE SEEM TO THINK EVERYTHING WORKS DIFFERENTLY.+
MR. BRAY EXPLAINED THAT IN BIG COUNTRIES SUCH AS AMERICA OR BRITAIN IT WAS TRUE THE GOVERNMENT OUGHT TO SPEND MORE AND TAX LESS DURING TIMES OF DEPRESSION.
+YOU CAN GET THINGS GOING INTERNALLY WITHOUT WORRYING TOO MUCH WHERE THE MONEY COMES FROM, BUT OTHER PEOPLE'S IMPORTS HAVE TO BE PAID FOR,+ HE SAID.
EXTERNAL TRADE WAS OF MUCH LESS IMPORTANCE TO BRITAIN OR AMERICA THAN TO HONG KONG. +IF WE THREW GOVERNMENT MONEY AROUND OUR BALANCE OF PAYMENTS WOULD BE TURNED UPSIDE DOWN OVER-NIGHT.+
MR. BRAY SAID THE HONG KONG ECONOMY WAS MORE LIKE A FAMILY ECONOMY THAN THAT OF A LARGE DEVELOPED COUNTRY. IF A PRIVATE ECONOMY WAS IN RECESSION ONE COULD NOT INDULGE IN A SPENDING SPREE.
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/SPEAKING ABOUT