TNAG-0570-FCO40-703-Planning-paper-on-Hong-Kong-1976 — Page 132

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RECORD OF A MEETING HELD IN GOVERNMENT HOUSE ON FRIDAY, 21 MAY, 1976 AT 11.15am

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Present:

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сл

HICH 026/508/5

H.E.,

Mr. Cortazzi,

CS,

Ag. FS,

SHA,

S for E

S for H,

S for SS,

SNT

S for S,

DFS,

SCS,

S for A,

PA, DHA, CAC, PS/GH.

bolelii

In the course of discussion the following

points arose:

a) Mr. Cortazzi outlined the political pressures on Hong Kong to which Ministers are subject, and the many different economic and political factors which made Ministers particularly sensitive to them now and probably

for some time to come. He believed that if a confrontation

were to be avoided between HMG and the HK Government

Ministers would have to be able to point to progress in

Hong Kong at a greater speed than the HK Government had hitherto found acceptable.

b) In answer to Mr. Cortazzi Ag. FS said that in his

personal view the upper limit on standard rates of tax was

20% (as opposed to 15% personal and 17% profits at present).

DFS said that many factors had to be taken into account

including the extent to which the public sector drew off

SECRE

!

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