TNAG-2245-FCO40-3228-Bank-of-Credit-and-Commerce-Hong-Kong-Limited-(BCCHK)-1991 — Page 122

CONFIDENTIAL AND PERSONAL

Jox

across in a sympathetic way what they are trying to achieve. An example Wan the 200% increase in tobacco tax which Sir Piers Jacobs

introduced in a casual way in his budget

is Jon exopple of this.

He said

Incidentally,

although the proposed increases are for health and not for ✩ fiscal reasons, it is has not escaped my notice that the estimated additional revenue, after allowing for consumer resistance will be about £1.9 billion'). It is also puzzling that

put forwa why the Financial Secretary should have allowed this measure

to go when it would have such an obvious impact on an

index/That aside, few commentators

ich inflation rate the consumer price index.

would hold the Hong Kong, responsible for the sluggish growth in the economy over the last 2 or 3 years. Being such an

orientated externally economy, Hong Kong is greatly influenced by outside factors. During this period these have been primarily the clamp down on credit expansion in China and recession in it's major market the US.

the

already

к

M Stone

ROFATE/3

JRB

CONFIDENTIAL AND PERSONAL