TNAG-1641-FCO40-2288-Budget-of-Hong-Kong-1987 — Page 229

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FROM:

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Hong Kong Department

DATE: 25 February 1987

Mr McKaren

PS/Mr Rento

2675

Rinistra

CC. Mr Gillmore

Economic Advisers

Wemendous growth forms

fguns R.

HONG KONG: 1987-88 BUDGET

1.

The Financial Secretary of Hong Kong presented his

budget for 1987-88 in the Legislative Council earlier

today. An advance copy of Mr Jacobs' speech is attached.

The present strong state of the Hong Kong economy

made Mr Jacobs' task in preparing his first budget an

enviably smooth one.

The economy out-performed estimates for 1986 in every important area. The budget contains no

real surprises. The small cuts in personal and profits tax

had been expected.

3.

The Economic Advisers will prepare their customary

analysis of the budget when the supporting documentation

arrives, and this will be submitted shortly.

meantime, Mr Renton may be

In the

interested to see the

attached

summary of the main points.

Cobten

со нит