TNAG-0575-FCO40-708-Visits-of-Anthony-Crosland--Secretary-of-State-for-Foreign-a-1976 — Page 15

CODE 1677

Fir Dart, Economists Dept

seicence... M14 0.26/548/

1.

Please refer to the attached record of the meeting between the Political Adviser, Hong Kong and various members of the Secretary of State's party for the recent visit to the Far East.

To my mind, Mr Donald's comments give some_indication of forthcoming Hong Kong reactions to the Planning Paper.

2. I am by no means convinced by Mr Donald's argument in paragraph 2(a) of the record. 1 find it difficult to believe that the Chinese Government would object to increases in public expenditure designed to help the poorer sections of the community in Hong Kong, especially if the cost of this could be borne by the small minority who at present pay salaries tax. I certainly think there is merit in clarifying his reference to this opposition being reflected in local communist propaganda at this stage. I attach a draft letter

to Mr Donald with this in mind.

3.

As you are, at present, working on the implications of increasing public expenditure in Hong Kong, I would be grateful for your comments on the draft.

$

19 May 1976

RB Janvrin

Hong Kong and Indian Ocean Department K 245

233 4777

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