TNAG-0223-FCO40-259-Appointment-of-financial-secretary-of-Hong-Kong-1970 — Page 22

CONFIDENTIAL

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The duties of the Deputy Economic Secretary were much less clearly

defined, and it was here that reorganisation and expansion were most

needed particularly in improving the information available to the

Financial Secretary, to enable him to undertake longer term planning,

which was at present almost totally lacking.

There was also the problem of the specialised organisations,

relating to currency and banking, which at present function independently

of each other and with which the Financial Secretary's contacts were at

present rather intermittent. These are the Exchange Fund, which comes

under the Deputy Financial Secretary, and the Exchange Controller and the

Commissioner of Banking, who come under the Deputy Economic Secretary

though the Financial Secretary himself is the Chairman of the Banking

Advisory Committee. Although he has no present intention of combining

these three Departments under a single head to form a sort of central

monetary authority, Haddon-Cave would like to bring them closer together, and into more regular contact with the Financial Secretary, particularly

in the provision of statistical information and forecasts.

On the staffing side, Haddon-Cave felt that the most pressing

need was for a qualified economist who could act as an Assistant to the

Financial Secretary, with the main tasks of developing and co-ordinating

information on economic and financial matters, since the present

statistical effort is concentrated almost exclusively on questions of

trade and population;

and who would also advise the Financial Secretary

on questions of long-term economic forecasting and planning.

Haddon-Cave

recognises that no one of the required calibre can be produced from within Government or academic circles in Hong Kong, and that he would have

to rely on an expatriate. He hoped that it would be possible to recruit

someone with the right qualifications who would be prepared to make a

career in Hong Kong. The main difficulty, which Haddon-Cave also

recognised, was that the salary that the Hong Kong Government could offer

might not be sufficient to attract anyone of sufficiently high calibre.

1970.

6th November 1970.