TNAG-0446-FCO40-511-Discussions-with-Sir-Murray-MacLehose--Governor-of-Hong-Kong-1975 — Page 5

(3002) Dmd. 145244 400M 10/73 L.Ltd. 839/1

NOTHING TO BE WRITTEN IN THIS MARGIN

Registry

No. HKK 3/548/12 DRAFT

SECURITY CLASSIFICATION

Top-Secret,

Secret.

Confidential.

Restricted.

Unclassified.

PRIVACY MARKING

In Confidence

Distribution

PS

To:-

Page

SECRET

RECORD

Type 1 +

FROM

Telephone No. Ext.

Department

MEETING BETWEEN LORD GORONWY-ROBERTS AND THE GOVERNOR

OF HONG KONG ON 18 DECEMBER (10.15 am)

PS/Mr Ennals

PS/Lord Goronwy-

Roberts

PS/FUS

Sir D Watson

Mr Wilford

Mr Male

Mr McNally

HKIOD

Defence Dept

FED

G&G D

OLA

Legal Advisers

cc:

Sir M MacLehose

(Personal) HONG KONG

HM Ambassador

PEKING

Present

Lord Goronwy-Roberts

Mr Ennals

Sir D Watson

Mr K M Wilford

Mr P JE Male

Mr T McNally

Mr G Foggon

Ir AC Stuart

Mr D M March

Mr A C Galsworthy

Mr B H Dinwiddy/

Sir Murray MacLehose

I The General Situation in Hong Kong

1

Sir Murray MacLehose outlined Hong Kong's economic and budgetary predicament. The blueprint of 10-year social programmes had been sketched and costed in 1972/73. Following the 1973 inflation in world Commodity prices, and particularly the increases in the price of oil, it had been necessary in the 1974/75 Budget to increase taxes and to forecast/further further increases of HK$ 500 million in 1975/765

2.

In the past six months there had been a further marked deterioration. The real growth-rate (83 in the year to mid-1974) had fallen back to nil, and exports had fallen 10% by volume in November 1974 compared to November 1973. A budget deficit of HK 400m was now forecast for 1974/75.

SECRET

13.