TNAG-1755-FCO40-2475-Future-of-Hong-Kong-Parliamentary-debates-1988 — Page 62

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Kaufman (GURTON)

Blaher

(BLACKPOOL 5)

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

17.

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 No offer

of policies in these areas will fall within the autonomy of the L's balance Hong Kong SAR Government. There is a cogent argument that it is Sadget & inappropriate to enshrine such provisions in the Basic Law. March said

JX

Jas.)

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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