TNAG-2470-FCO40-3594-Budget-of-Hong-Kong-1992 — Page 12

PS/GH

CONFIDENTIAL

File No... CPU...L/M...A/20/92C..

JLG COMMENTS ON THE BUDGET

Page..

JLG member, LUO Jiahuan, recently

discussed CPG

attitudes towards HKG's Budget and the background to LU

Ping's public criticism of its contents.

FEARS FOR THE SARG

2.

LUO stated that the CPG had been concerned by the

Budget because it believed:

(a) The UK (sic) was trying to end its rule of

Hong Kong on an economic high note;

(6)

(၁)

For this purpose, HKG has boosted expenditure

through rapid expansion of welfare spending

and infrastructural projects;

This

"politically-inspired"

growth in HKG

spending had necessitated tax increases;

(d) HKG's tactics would result in serious

over-heating

consequence,

of the economy;

and, in

CONFIDENTIAL