TNAG-1754-FCO40-2474-Future-of-Hong-Kong-Parliamentary-debates-1988 — Page 18

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10.

Provisions on the economy, (balanced budget, low tax policy)

We are well aware of its criticisms that some provisions in the

draft (eg on a low tax policy, a balanced budget and open financial

and monetary policies [Articles 105, 107 and 110]) are inconsistent

with the Joint Declaration provisions stipulating that the handling

of policies in these areas will fall within the autonomy of the

Hong Kong SAR Government. There is a cogent argument that it is

inappropriate to enshrine such provisions in the Basic Law. We feel

sure that the Chinese authorities will take account of criticism of

these articles. One possibility that has been suggested is that

these provisions should be drafted as guidelines rather than as

legally binding stipulations.

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