TNAG-0845-FCO40-1055-Visits-of-Foreign-and-Commonwealth-officials-to-Hong-Kong-1979 — Page 41

to have a look at the budget before it is delivered ?

Mr Blaker: I won't put the same emphasis on this point as Lord Goronwy-

Roberts apparently put according to the questioner. I think that the

way the Hong Kong budget is drawn up is very much a matter for the

government of Hong Kong and its taxation policy is very much

a matter for the government of Hong Kong. It has a low rate of

taxation. This I believe is one of the factors that has encouraged

people to invest in Hong Kong whether they come from other countries

or whether they are Hong Kong people themselves. Hong Kong has an

undoubted record of success. The growth in Hong Kong is absolutely

remarkable. Since I was last here six years ago the skyline has been

transformed even more dramatically than it was in the preceding six

years and this is a process which seems to continue very successfully.

Now obviously social welfare is very important. I think, as I was

saying earlier, that the record of the Hong Kong Government in

social welfare matters, including housing, bears comparison with

any, pretty well, any comparable country in Asia. Obviously, as

I've said before, there are defects and things that want to be

remedied but nevertheless I wouldbe very reluctant to interfere

with the low tax policy of the Hong Kong Government because it has

had remarkable success and therefore I think that it would be a very

unwise man who tried to dictate to the Hong Kong Government that it

should pursue a higher tax policy.

Question: Is there any negotiation between Peking and London on extending

the lease on NT beyond 1997 ?

Kr Blaker: No, I don't think you would expect me to say anything about that

matter. As it has been said in the past this is a matter for the

future.

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