TNAG-1397-FCO40-1869-Future-of-Hong-Kong-Basic-Law-1985 — Page 194

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

7.

necessary

On the other hand, some control and regulation is

: in order to maintain social order and uphold

the law, activities which hinder the maintenance of]

stability and unity must be controlled to some extent.

Examples are laws relating to the regulation of banks and

exchanges, to safety measures in industrial undertakings,

to the prevention of pollution, and to the regulation of public

utilities.

8.

New rules and regulations must inevitably be added

from time to time, especially in difficult and unusual

circumstances. Unless absolutely necessary, hwoever, rules

and regulations should preferably be reduced rather than

increased.

Low Taxation

9.

Everybody recognises that taxation in Hong Kong

is relatively low. But from time to time suggestions are

made that present rates could be increased and still remain

low compared with neighbouring countries. The dividing

line between high and low is one thing; people's confidence

in a low taxation system is another. Confidence is an

extremely important factor to decisions made by investors.

Many countries have had to increase taxes because of

increases in public expenditure.

/11.

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