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But it is true that Hong Kong does have comparatively low rates of tax
and a comparatively simple fiscal system: there is no exchange control, and
there is freedom to employ such staff as a firm sees fit, and freedom to
remit profits and capital at will, and in comparison with other communities
there is a refreshing absence of regulation and red tape. So in Hong Kong
the entrepreneur probably does enjoy greater freedom to get on with his job
than in any comparable place of business. We have every intention of adhering
to this general approach.
The prudently orthodox financial philosophy of the Government is
consistent with this general approach. Hong Kong must be unusual amongst the
major cities of the world in having debt of only negligible proportions and
in maintaining at the same time very large fiscal reserves, Of course Hong Kong
has never received aid of any significance, and suspects that none would
help her if she failed, and I can assure you that this background can be a
stern enforcer of financial discipline.
But Hong Kong is not just an industrial, commercial or financial
institution.
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It is a community of about 41⁄2 million, intensely shrewd and
active people. It is governed with more real freedon than any other community
without in Asia and yet because of circumstances which are forced upon it
elected government. It is a fascinating and constantly evolving story, how in
these circumstances the Government seeks to achieve consent for its policies,
tries to be responsive to the wishes of its people and aims to achieve their
participation because in these respecta Hong Kong really is unique in the
Nowhere else can the constitution be so authoritarian but the practice be
world.
so deeply imbued with liberal traditions and safeguards.
The major problem