XN000022-1978-04-26 — Page 47

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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