TNAG-0747-FCO40-951-Visits-of-Foreign-and-Commonwealth-officials-to-Hong-Kong-1978 — Page 117

Mr Smith

HKK.026/1

CONFIDENTLAD

INDEX

R

by

978

30. 51

REGISTRY

Alon

Mr Augnh

39

الهیه

for info.

A fritty exoteric stuff, "fear.

17/4

TWO STEWARTS'VISIT TO HONG KONG IN APRIL

Meeting, April 12-14

1. While you were in York I had a brief conversation with Michael Stewart, who wanted my budget comments as priming for a meeting with Mr Cortazzi and John Stewart (which was held on March 21). I asked him what subjects he would like included in an economic brief for his trip and he said he would prefer to have a couple of meetings instead, one on the political side with John Stewart, and one on the economic side with us. The latter would be immediately prior to going (on April 15) but after the UK Budget (Tuesday, April 11) on a day mutually convenient, ie Wednesday 12-Friday 14 inc.. I am free all week.

2. As background for this meeting I thought I would prepare some notes on topics that he may wish to raise while out there. Although the stated aim of his visit is to review tax policy, it is unlikely Mr Stewart will take a narrow view of his task; accordingly attached are some draft notes on points of interest in the Hong Kong Government's current macroeconomic policies. I have written the drafts early to allow time for redrafting before the meeting and hope that I have covered the field. I have not covered tax policy in any depth for obvious reasons, but thought the graph might be useful at our meeting. They are designed primarily as background notes for us to use when meeting Michael Stewart.

3. I have sent Michael Stewart another copy of the World Bank Report, which contains (about) a three-page summary and critique of existing tax policy, as well as my two-page and seven-page summaries of the Report.

30 March 1978

Mark

Mark Hull

CONFIDENTIAL