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Para 24:
"Profound resistance of Hong Kong people at all levels to Government levies of any sort." This is true of most people in most countries and is surely an exaggeration.
Para 25:
I think that we need a firmer commitment to introdi ce a more progressive system of taxation as well as reference points or targets in relation to levels of taxation and of expenditure as proportion of GDP, eg income tax levels rising over 5 years to 20% plus a surcharge of up to a further 10% on incomes over X thousand dollars plus the aim of 25% of GDP on public expenditure within say 6 years.
Para 25:
What
I do not think we can accept the 4th sentence as it stands. about: "the Hong Kong Government should be given reasonable flexibility and discretion on how best to achieve these targets"?
Para 27:
I should welcome Mr Lipsey's views on this. The reference to the exclusion of Government servants strikes me as odd. Are there no independent public service unions from whom a representative could be drawn?
Para 28:
Perhaps the parameters of expansion of Legco should be drawn.
Para 32:
The first two sentences may be factually correct, but this surely does not mean that this was necessarily the right approach. Sentence 3 is open to question. The lack of progress to representative government could be regarded as a reason why there should be more control. This paragraph will need careful thought and some modi- fication. The last two sentences seem unobjectionable.
Para 33:
This contains some good points but needs careful thought.
Para 34:
This misses the point that Hong Kong criticisms of Britain are often based on the conflict between Hong Kong concepts of capitalism and British ideas of social democracy. Expatriates including some officials are among the most vocal critics of HMG's economic policies.
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/ Annex C
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