TNAG-0334-FCO40-370-Visits-of-Secretary-of-State-for-Foreign-and-Commonwealth-Af-1972 — Page 174

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

(885363) Dd. 896639 1,000M 8/71 St.S.

NOTHING TO BE WRITTEN IN THIS MARGIN

Registry

No.

URITY CLASSIFICATION

Top Secret.

Secret.

Confidential.

Restricted.

Unclassified.

PRIVACY MARKING

..In Confidence

CONFIDENTIAL

No .8...

Type 1 +

DRAFT

BRIEF

To:-

From

Telephone No. & Ext.

Department

Внев

No

8

SECRETARY OF STATE'S VISIT TO HONG KONG

FEBRUARY 1972->

White

Paper

(AID TO HONG KONG

1.

CDEFENSIVE)

Hong Kong receives virtually no financial

aid from HMG. Since the end of the last war,

with one or two exceptions, it has run a substantial

surplus on the recurrent budget, from which it

has financed its own development expenditure,

which has been on a massive scale. In recent

years the Colony has enjoyed a spectacular boom

Ip

(budget surpluses of £0 million in 1968/69;

£31 million in 1969/70: £44 million in 1970/71).

Revenue has jumped from £131 million in 1967/68

to an estimated £215 million in 1971/72.

2. Hong Kong is the largest single holder of

sterling assets. Those assets stood at £682

million at the end of September 1971, comprising

official funds (£299 million) and private funds

(£383 million) held for residents and banks.

It is a sore point in Hong Kng that

3.

we have not felt able to make regular aid

Our reason is that

allocations to the Colony.

they have been able to manage without.

However,

the Colony may now be entering a period of

CONFIDENTIAL

/deficit

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