TNAG-2619-FCO40-3810-Official-visits-from-the-UK-to-Hong-Kong-1992 — Page 122

18-JUN-1992 17:53

FB GS

PERSONAL & CONFIDENTIAL

# 政司署

香港下亞厘畢道

(26) in FIN CR L/M 21/92

本署檔號 Our Ref.:

來的檔號 Your Ref.:

Mr S H Broadbent

Chief Economic Adviser

Foreign and Commonwealth Office

LONDON SW1A 2AH United Kingdom

Dear Simon,

+ 852 596 0729 P.02

1350

BY FACSIMILE

GOVERNMENT SECRETARIAT

LOWER ALBERT ROAD HONG KONG

18 June 1992

Visit of Sir John Anson

I

I am sorry it has taken me so long to come back to you but, as you may recall, I have had to take soundings. have also consulted Hamish Macleod, who will be visiting the FCO and the Treasury next week.

I am afraid I have somewhat over-stated the range of issues on

which my Branch would like advice. On closer examination, we now feel that it would be better to stay clear of the policy issues involved in defining public sector expenditure and in determining its size relative to GDP.

These depend very much on local knowledge and political judgement, and are in any case difficult areas on which to formulate clear and definitive advice.

Our main need is for advice of a more "professional" nature. That is to say, we would appreciate having the Treasury's advice and experience on the forecasting of public expenditure, determining the price basis of expenditure from year to year and the use of project appraisal in determining realistic cash outflows We might also benefit from the Treasury's experience on how your Government consults the legislature in the process of carving up the expenditure cake.

etc.