TNAG-0621-FCO40-769-Budget-of-Hong-Kong-1977 — Page 104

CODE 18 - 77

Mr Milton

назова

HONG KONG:

1.

SECRET

du. Fewor

HKD

Reference.

P.A fou

Vely Similar Spfemalion to those

which du. Finite put to you?

K 247

BUDGET FOR 1977/78

Dim

15/2

The time taken (4 years) for the index of real wage rates to reach its March 1973 peak has led me to look at what the budget means to the lower income groups in Hong Kong.

4

2. Paragraph 15 of the Hong Kong telegram, even when allowance is made for the effects of paragraph 21(A), leads me to suppose that for each of the next 3 years there is likely to be an increase in house rents. The poor will suffer!

3. The question should also be asked whether the improvement of personal allowances and child allowances (paragraph 21(B)) will benefit anyone other than the lower middle classes.

4. The increased exemption limit for estate duty (paragraph 21(C)) will please the well-to-do.

i(c)

5. I would imagine that the benefit of the elimination of five archaic heads to the Stamp Ordinance will only be of marginal interest to the lower wage groups (paragraph 21(D)).

My major concern is on the question of rents.

6.

REOD RE* *

IN

21 FEB M77

14 February 1977

HKK 100/2

M. R.5. Hunt

HR G Hurst Overseas Labour Adviser

SECRET