TNAG-0761-FCO40-965-Budget-of-Hong-Kong--1978-1979-1978 — Page 64

GR 150

IMMEDIATE

CER/CAT A

FM FCO 171310Z

SECRET

HKK 100/2

RECEN

255 1978

SECRET

INDEX

No

न्द्रि

$14

TO IMMEDIATE HONG KONG TELNO 125 OF 17 FEB 78

PERSONAL FOR GOVERNOR ONLY FROM LORD GORONWY-ROBERTS. YOUR TELMOS 156, 167, 168, 169: 1978/9 BUDGET

ஞ்

1. I AM GRATEFUL FOR THE DETAILED ADVANCE INFORMATION GIVEN

IN YOUR TELEGRAM UNDER REFERENCE AND YOUR LETTER OF 31 JANUARY

ON NEXT YEAR'S BUDGET. I CONGRATULATE YOU ON THE SIGNIFICANT

INCREASE IN PUBLIC SPENDING AND PARTICULARLY THE INCREASE

THE SOCIAL SERVICES A CONSEQUENCE OF THE VERY LARGE EXTENSION OF

SOCIAL AND OTHER SERVICES BROUGHT IN BY YOUR EFFORTS,

IN

2. THE MASSIVE SURPLUS ACHIEVED IN 1977/8 AND THE SURPLUS PREDICTED FOR 1978/9 (WHICH, AS THE HISTORY OF THE LAST FEW YEARS SHOWS, WILL ALMOST CERTAINLY TURN OUT TO BE MUCH LARGER) INDICATES

THAT THERE IS STILL A WIDE POTENTIAL IN HONG KONG FOR

REDISTRIBUTION OF WEALTH BY, E.G. AN INCREASE IN VARIOUS TRANSFER PAYMENTS AND RELIEFS OF VARIOUS CHARGES. I THINK WE SHOULD LOOK ON

THE COMING FINANCIAL YEAR AS BASE-BUILDING FOR A FURTHER MOVE

FORWARD IN CARE FOR THE POOREST SECTOR OF THE COMMUNITY, OWEN

FILES

HROGD (5)

PS/LORD GORONWY ROBERTS

MR CORTAZZI

MR MURRAY

HD/SEAD

SECRET

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