TNAG-0747-FCO40-951-Visits-of-Foreign-and-Commonwealth-officials-to-Hong-Kong-1978 — Page 106

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the Government informed of what the population in general think about Government policies.

The Information Department, in addition to its functions on behalf of the Hong Kong Government, is also charged with the task of projecting the British image in Hong Kong.

3.30 p.m.

Acting Financial Secretary: Mr Henry Ching P

The Financial Secretary has recently delivered his 1978 budget speech. The most interesting features of this include:

1) A large Government surplus for last year (e. HK$1,000m.).

2) A planned 35% increase in spending on social services in the coming year.

3) Virtually no change in the present tax system.

4) Adequate provision for all the proposals incorporated in the Governor's LegCo speech last October.

However,]

The budget was welcomed in the subsequent LegCo debate. some Unofficials argued that there was room for higher social spending and others expressed concern about the declining contribution of manufacturing industries to the Colony's GDP and the implications of this decline for Hong Kong's long-term prosperity.

4.30 p.m.

Commissioner of Police: Mr Brian F Slevin CMG OBE QPM CPM

The Royal Hong Kong Police Force (FHKPF) are at present emerging (we hope) from the serious internal crisis which was highlighted by the near mutiny of last November. This crisis was basically sparked off by resentment over the anti-corruption activities of ICAC. But it also revealed fundamental structural weaknesses within the Force which will have to be corrected if the RHKPF is to become an efficient and reliable Force, once more enjoying public confidence. The following measures are being taken to improve the situation:

a) As a result of consultations between HMG and the Governor, a team of three British police experts, led by one of HM's Inspectors of Constabulary, is currently in Hong Kong carrying out a thorough review of the RHKPF, with particular attention to the calibre of senior officers and the lack of satisfactory staff relations. The team expect to produce a final report towards the end of May.

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