TNAG-0108-FCO40-144-Briefs-for-Members-of-Parliament-visiting-Hong-Kong-1969 — Page 85

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Jokkisi bu “direct ques-

In answer to tions I have expressed doubts about one aspect of Hongkong policy, namely the Government's budgetary strategy. If I make some further remarks on that, rather than on the many things which I admired, it is not because I claim any right to the attention of the Hongkong Government, but because my remarks were not well understood.

For ten years the Government budgeted for a deficit and got a surplus. The deficit goose becomes a surplus swan

because revenue, is estimated at a "minimum, figure and rex-

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penditure at a maximum. Thus surpluses rise in two ways. Some years produce in under-spending, while others there is an upsurge in revenue. Naturally, in some years both of these factors operate. To persist in bud- geting in this way demon- strates quite clearly an over- cautious attitude.

Careful

The new generation of Chinese will have higher than their expectations

parents. They cannot ex- press them through the ballot box, and thus the

F

to be Government has doubly careful to see that public expenditure pro- grammes rise sufficiently rapidly to keep pace with social expectations. Since cannot the Government hurriedly increase expendi- ture, when its surplus is becoming larger than supposed, the obvious re- quirement is a bolder long- term strategy in permitting and planning for increased expenditure.

I have been excited by Hongkong and shall return to UK as a staunch friend. Since friendship is demon- strated in action, not words, I will leave it at that.