Finance Ministers

"I hold that two principles are important; first that there should be a steady expansion of public services, not an irregular one related to revenue accruing in any particular year; the second that taxes should be constant over long periods (provided, that is, that they are neither burdensome nor inequitable)."

"I met Cowperthwaite in 1963 on my next visit to Hong Kong. I remember asking him about the paucity of statistics. He answered, "If I let them compute those statistics, they’ll want to use them for planning.""

"I have worked for many years with Sir John and I know only too well how wise he can be. I also know what a kind heart beats under his severe exterior―though he would never admit it. He has often, in my view, been unfairly criticized but, as Financial Secretary, he has done far more for Hong Kong than most people, and much more than most people realize."

"Cowperthwaite had a clear desk with no files; he had plenty of time to think. Few were his equals in either intellect or initiative. He invariably had his way with the departments."

"Cowperthwaite was brilliant, well-trained in economics, suffered no fools, and was highly principled. He wouldn't last five minutes in a similar post in Britain, since he was no predisposed to compromise any of his principles - only the constitutional structure of Hong Kong allowed him that power."

"You always had the feeling that Cowperthwaite was looking over your left shoulder. You knew that he would ask at least five questions about any proposal that was submitted."

"I am confident, however old-fashioned this may sound, that funds left in the hands of the public will come into the Exchequer with interest at the time in the future when we need them."

"I am afraid that I do not believe that any body of men can have enough knowledge of the past, the present and the future to establish “development priorities” — which presumably means procuring some developments as being good and prohibiting others as being bad."

"I have three objections to my honourable Friend’s wider proposal that exchange control powers be used to require the fixing of exchange by merchants on entering into both export and import contracts. The first is that I think it excessively paternalistic to require a merchant to protect himself against a risk he is prepared to take. Secondly, I think it wrong to impose a condition which is likely to cause one group of merchants a loss, for the purpose of providing the other group with protection at no cost to them. Thirdly, I do not think it is in fact practicable to enforce such a system. I am sorry to be so negative, but I am sure that the solution to my honourable Friend’s problem should not depend on compulsion but on the provision of voluntary protection on insurance principles."

"Simply put, money comes here and stays here because it can go if it wants to go. Try to hedge it around with prohibitions, and it would go and we could not stop it; and no more would come."

"Deficit financing proper is rather the process whereby a Government spends more money that it withdraws from the economy by taxation, borrowing, running down reserves, etc.; thereby causing in most circumstances, and very acutely in ours, monetary inflation and severe pressure on the balance of payments."

"One of these is an increasing awareness of the benefits to our economy, particularly in terms of investment and enterprise, both local and from overseas, of not having the inquisitorial type of tax system inevitably associated with a full income tax. Another is that even I, who have always believed in the vigour of our economy under our present tax regime, have been surprised by the growth of revenue generated at our present tax rates."

"My own views on all matters of public revenue and public expenditure are conditioned by an acute appreciation of whose is the sacrifice that produces public revenue and to whom accrues the benefit of public spending."

"I still believe that, in the long run, the aggregate of the decisions of individual businessmen, exercising individual judgment in a free economy, even if often mistaken, is likely to do less harm than the centralized decisions of a Government; and certainly the harm is likely to be counteracted faster. As I said earlier in this debate, our economic medicine may be painful but it is fast and powerful because it can act freely."

"I largely agree with those that hold that Government should not in general interfere with the course of the economy merely on the strength of its own commercial judgment. If we cannot rely on the judgment of individual businessmen, taking their own risks, we have no future anyway."

"I would suggest to my honourable Friend that the foreign investor is at least as discouraged by high national debt for that, as all example shows, is the surest precursor of high taxation."

"It seems to me that we have three choices; first, public services of high standard and cost but of limited scope, leaving unfilled a substantial part of the present gap, not necessarily benefiting those in real need and benefiting many who are not in need at all (this has been our historical approach); second, public services to meet the requirements of all, with the beneficiaries making a contribution by way of fee according to their means, and with adequate provision for complete remission in suitable cases; or third, universal public services provided for rich and poor alike on terms the poorest can afford; that is, the welfare state where all benefit and the whole cost is met by the taxpayer in general. I think it is well-known that I am an advocate of the second approach."

"Many of our services cost more than do similar services in Europe, because, although we have a substantial quantitative deficiency of public services, the decision-takers and policy-makers, both inside and outside Government as I have said before today, being themselves from the better-off (to use a popular euphemism) sectors of our society, not only demand the highest standards of provision of public services to meet what they consider their own essential needs (for example, in public car parks); but also find it difficult to think of provision for the rest of the population in terms of standards relative to our real total resources."

"If one accepts that in general social services should be made available to all on the basis of ability to pay, one has the choice of two opposite principles of action, although they need not be mutually exclusive—either progressive taxation and free services or fees covering costs with remission for those who cannot afford them. The former method is appropriate, in my view, in rich developed countries where the principle of progressive taxation can be applied without unduly adverse economic or social results, and the wastes inherent in full and free services can be afforded. In less advanced or poorer countries, where neither economy nor society is geared to progressive taxation and waste cannot be tolerated, fees remittable in case of need seem to me clearly more appropriate."

"Revenue has increased in this way is in no small measure, I am convinced, due to our low tax policy which has helped to generate an economic expansion in the face of unfavourable circumstances"

"A glimmer of light is better than no illumination at all."

"Money cannot be converted into houses or trained teachers or hospitals at the touch of a magic wand. There are limitations to our physical and intellectual resources."

"Economists of the modern school will no doubt protest that I have said nothing of the use of budget deficits or surpluses for the control of the economy in general. I doubt if such techniques would ever be appropriate in Hong Kong's exposed economic position; and I think they are certainly not appropriate at present, when in strict orthodoxy they would suggest the need to plan for a very substantial surplus "to take the heat out of the economy". Although we have in fact run substantial surpluses in recent years we have not done so with deflationary effect because we have not removed them from the economy but have left them inside the Colony's banking system to continue to work for the economy. $500 million or 55% of reserves are so held at present."

"I should like to begin with a philosophical comment. I do not think that when one is speaking of hardships or benefits one can reasonably speak in terms of classes or social groups but only in terms of individuals."

"We enjoy a considerable net inflow of capital and I am sure that a condition of its coming, and staying, is that it is free to flow out again. It is also important for Hong Kong's status as a financial centre that there should be a maximum freedom of capital movement both in and out."

"I am also, I must confess, a little sceptical of the theory that we have a right, if we could, to pass on our capital burden to future generations. I remarked last year in this context that our predecessors had not passed any significant part of their burden on to us."

"I will not be proposing a course which has been under some public discussion recently — deficit financing. It is wholly inappropriate to our economic situation. In its least extreme form it is based on the theory that additional money generated by a Government deficit (and given currency, as necessary, by use of the printing press) will stimulate consumption and thereby production, in time to match the excess money with goods before real inflationary harm is done. Unfortunately we don't, and can't, produce more than a small fraction of what we consume, and increased consumption would merely mean increased imports without matching exports; and a severe balance of payment crisis, which would destroy Hong Kong's credit and confidence in the Hong Kong dollar; and which we could not cure without coming close to ruining ourselves. Keynes was not writing with our situation in mind. In this hard world we have to earn before we spend."

"One trouble is that when Government gets into a business it tends to make it uneconomic for anyone else."

"Over a wide field of our economy it is still the better course to rely on the nineteenth century's "hidden hand" than to thrust clumsy bureaucratic fingers into its sensitive mechanism. In particular, we cannot afford to damage its mainspring, freedom of competitive enterprise."

"Official opposition to overall economic planning and planning controls has been characterized in a recent editorial as "Papa knows best". But it is precisely because Papa does not know best that I believe that Government should not presume to tell any businessman or industrialist what he should or should not do, far less what he may or not do; and no matter how it may be dressed up that is what planning is."

"An infant industry, if coddled, tends to remain an infant industry and never grows up or expands."

"The fact that previous generations have handed down to us a substantial public heritage by way of roads, port, etc. almost completely free of debt, seems to me to impose some limitation on the validity of the theory that by borrowing we should, or could, pass on the burden of development to the next generation."

"Vous n'avez pas, M. Mitterrand, le monopole du cœur. (You do not have, Mr Mitterrand, the monopoly of heart)."

"The man of the past."

"Undaunted, the Brussels establishment continued to pursue unification. By 2005 it had sought to adopt a new constitution, overseen by the veteran French politician Valéry Giscard d’Estaing. This awarded the EU a third presidency (now of the European Council as well as its Commission and Parliament), and further extended majority voting in the European Council. This ran into immediate trouble. Rarely in the EU’s history were the peoples of Europe directly consulted on its powers, or even its existence. Decisions were taken by elected governments. The Giscard constitution was rejected in French and Dutch referendums, and the final treaty by the Irish. These votes were either rerun or ignored. The final Treaty of Lisbon was signed in 2007, with virtually no concessions to subsidiary nationalism, its authors blind to any incipient resentment it might breed."

"Yet, alongside Western weaknesses, there were also serious problems for the Soviet system, while the American position was less bleak, in both absolute and relative terms, than the successive electoral defeats of presidents Gerald Ford and Jimmy Carter in presidential elections in 1976 and 1980 might suggest. Moreover, the failure of the Communists to benefit substantially from the changes in Portugal, Spain and Greece was matched by Communist weakness elsewhere in Western Europe. Valéry Giscard d’Estaing, French President from 1974 to 1981, and Helmut Schmidt, German Chancellor from 1974 to 1982, combined to act as a very strong stabilising force and to relaunch the EEC project. Within the Socialist International, the so-called Socialist Triangle of Willy Brandt, Olof Palme, Swedish Prime Minister, and Bruno Kreisky, Austrian Chancellor, was dominant. In Italy, the Communist Party, the most powerful in Western Europe, adopted a ‘Euro-Communism’ that was opposed to Soviet direction. Enrico Berlinguer, who became Party Secretary in 1973, a key figure, was committed to the existing democratic system and pursued what was termed the ‘historic compromise’ with the established Christian Democrat-dominated political system. A pact was negotiated in 1976, with the Communist Party agreeing not to try to overthrow the Christian Democratic government. Euro-Communism was a term coined in 1975 by Western European Communist leaders keen to demonstrate their democratic credentials. More generally in Western Europe, the declining position of heavy industries was a challenge to the trade unions that were central to left-wing political parties, and notably to the Communists."

"Did it have to come to this? The paradox is that when Europe was less united, it was in many ways more independent. The leaders who ruled in the early stages of integration had all been formed in a world before the global hegemony of the United States, when the major European states were themselves imperial powers, whose foreign policies were self-determined. These were people who had lived through the disasters of the Second World War, but were not crushed by them. This was true not just of a figure like De Gaulle, but of Adenauer and Mollet, of Eden and Heath, all of whom were quite prepared to ignore or defy America if their ambitions demanded it. Monnet, who did not accept their national assumptions, and never clashed with the US, still shared their sense of a future in which Europeans could settle their own affairs, in another fashion. Down into the 1970s, something of this spirit lived on even in Giscard and Schmidt, as Carter discovered. But with the neo-liberal turn of the 1980s, and the arrival in power in the 1990s of a postwar generation, it faded. The new economic doctrines cast doubt on the state as a political agent, and the new leaders had never known anything except the Pax Americana. The traditional springs of autonomy were gone."

"Europe without Greece is like a child without a birth certificate"

"This text is, in fact, a rerun of a great part of the substance of the constitutional treaty."

"Public opinion will be led to adopt, without knowing it, the proposals we dare not present to them directly. (...) This approach of 'divide and ratify' is clearly unacceptable. Perhaps it is a good exercise in presentation. But it would confirm to European citizens the notion that European construction is a procedure organised behind their backs by lawyers and diplomats."

"The rejection of the Constitutional treaty by voters in France was a mistake that should be corrected."

"Thank you, have a nice day. I will now see the president of Azerbaijan, so the nice part of the day is over."

"Borders are the worst invention ever made by politicians."

"We feel we need a Capital Market Union, Energy Union, Economic and Monetary Union but we also think we need security union"

"Here comes the dictator."

"There can be no democratic choice against the European treaties, one cannot exit the euro without leaving the EU."

"When it becomes serious, you have to lie."

"I don't think Spain will need any kind of external support."

"Monetary policy is a serious issue. We should discuss this in secret, in the Eurogroup [...] I'm ready to be insulted as being insufficiently democratic, but I want to be serious [...] I am for secret, dark debates."

"We all know what to do, we just don’t know how to get re-elected after we’ve done it."