TNAG-0606-FCO40-754-Monitoring-progress-made-on-planning-papers-on-Hong-Kong-1977 — Page 250

Har A (63)

Mr Dukry

HONG KONG:

Até

30

12/1/97

Reference.

CONFIDENTIAL

هما

2/3/77

2017/5 2/2/77

MONITORING THE PLANNING PAPER:

FINANCIAL ASPECTS

I put a B.U. for this week on Mr Maud's minute of 8 November to Mr Stewart with a view to keeping FRD posted about any further developments with regard to monitoring the financial aspects of the Planning Paper.

2.

HKIiod/2 budget. ники

3

In fact, I do not think that any further action is called for at this stage. FRD will have received a copy of the record of Lord Goronwy-Roberts' meeting with the Governor of Hong Kong on 9 December at which the prospects for the 1977/78 budget were discussed. I have also sent Mr Maud a copy of my minute of 4 January about the Hong Kong Government's decision to announce the size of the planned increase in the rates in advance of the I think that these papers cover (i) in paragraph 2 of Mr Maud's minute. I am not aware that there have been any further developments as regards Hong Kong's management of its sterling balances (paragraph 2 (ii) of Mr Maud's minute). FRD were consulted in the drafting of the letter that the PUS sent to Sir Douglas Wass in the Treasury about this matter and also about Mr Haddon-Cave's personal position (paragraph 2 (iii) of Mr Maud's minute). As I have told Mr Smith, who was enquiring today, I do not know what, if anything, was said about Mr Haddon-Cave's position at the PUS's meeting with the Governor on 7 December.

3. I will send FRD a copy of a minute I am doing convening the next meeting of the Standing Committee on Hong Kong to be held on 23 February. Meanwhile, I think that we can await further information from Hong Kong about the budget prospects before involving FRD. On this matter, the discussion at Lord Goronwy- Roberts' meeting with the Governor ended up with the Minister of State saying that "he wished to have, in an appropriate form by an appropriate channel and three weeks before the budget speech was given, as much detail of Hong Kong's thinking as possible". (Item 2, paragraph 6, of the record refers.) If the timing of the last budget is followed on this occasion, it should mean that the budget statement will be made during the first week or so of February. I discussed with Mr Stewart at the end of last week and we provisionally agreed that if we had not learned more from Hong Kong about the shape of the budget by 17 January, the date of Mr Stewart's return to the Office, we should consider sending a reminder to Hong Kong. I think that these papers, so far as they concern the financial aspects of the Planning Paper, can be put away until then.

5 January 1978

D.F. Milton.

D F Milton

Hong Kong Department

CODE 18-77

CONFIDENTIAL