TNAG-0607-FCO40-755-Monitoring-progress-made-on-planning-papers-on-Hong-Kong-1977 — Page 218

CONFIDENTIAL

MINUTES OF THE THIRD MEETING OF THE STANDING COMMITTEE TO MONITOR THE HONG KONG PLANNING PAPER HELD ON 19 MAY 1977

1.

2.

Present:

Mr Cortazzi

Mr Murray

Mr Stewart

Mr Smith

Mr Hurst

Mr Walsh

Mr Milton

Chairman

Head of HKGD

Senior Economic Adviser Overseas Labour Adviser

Deputy Overseas Labour Adviser

Mr Duffy

Mr David

Mr Upton

HKGD

HKGD

HKGD

HKGD

86

Agenda Item 1: Financial Matters

(a) The 1977/78 Budget

There was some discussion of Hong Kong's budget for 1977/78, the latter's relevance to the social programme in particular, and the degree to which it could or should be seen as an instrument giving effect to economic and social objectives in Hong Kong. It was agreed that a number of points would be followed up in writing with the Hong Kong Government.

(b) The Report of the Third Inland Revenue Review Committee

The contents of this Report were noted with some disappoint- ment, together with the fact that the Hong Kong Government have not yet completed their study of it and that the time scale for any reform appeared long. It was agreed that the Governor should be informed of the Committee's preliminary reactions; that the FCO proposed to seek an informed opinion on the Report, possibly from the Board of Inland Revenue; and that, in the meantime, it would be helpful to have the Hong Kong Government's own reactions to the Report.

Agenda Item 2: Labour Matters

(a) The Turner Study

It was noted that Professor Turner's preliminary report had been well received at the OLCC meeting on 29 April. However, the "trade union" view of it was apparently that:

(i) it relied too much on "official and employer sources"; and

(ii) that it should come out more strongly in favour of the Hong Kong Government "setting an example" in

CONFIDENTIAL