XN000022-1972-03-29 — Page 10

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Wednesday, March 29, 1972

"But it is simply not possible, except at a social cost, for the

demands of the public sector to be cut back at a time when the economy

as a whole is expanding with all that that means in terms of the community's requirements for new facilities and expanded services."

In yet the next breath, my honourable Friend pleaded for "a

suitable but not extravagant boosting of public expenditure", he pointed out.

"I find this, in fact, a most adequate description of the 1972-73 Draft Estimates of Expenditure and I commend then to my honourable Friend for his further attention," he said.

Long Term Bond

The Financial Secretary assured the Hon. Wilfred Wong that the financing of the deficit on capital account would not, within limits, be allowed to inhibit the steady expansion of the Colony's recurrent services and that, in certain circumstances, Government would "cheerfully draw down our reserves".

On Mr. Wong's suggestion that major public works should be financed with local bond issues, he pointed out that there were various complicated aspects of any attempt to raise funds locally in that way which perhaps had been overlooked.

"Obviously the success of a large long term bond issue would be dependent on the Government being prepared to offer re-purchase facilities or on the development and maintenance of a secondary market throughout the life of the bonds," he said.

On Hong Kong's

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