XN000022-1971-02-24 — Page 25

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Wednesday, February 24, 1971

In the last ten years, the ratio had varied between 65 per cent

in 1963/64 and 75 per cont in 1968/69. In the 1971/72 estimates, it was

74 por cent. Also, as there tended to be a time-lag between revenue growth

in times of increasing prosperity and the growth of public spending, Hong

Kong tended to accumulate surpluses during that period which enabled it

"to look at deficit sponding on capital works with sono oquinimity."

But there was one catch, in that some $150 million a year of the

Colony's present revenue from interests depended on the maintenance of its

surplus funds unspent.

"Not that this revenue would all disappear if we invest in works

which produce revenue directly or indirectly," ho commentod. "And, of course,

we have not in the post-war years experienced any long period of serious

time-lag in the opposite direction."

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