Tributes flood in to 'builder of HK prosperity'

Former chief secretary Sir Philip Haddon-Cave laid the foundations for the modern financial administration of Hong Kong, his former colleagues said last night.

The original proponent of 'positive non-intervention', Sir Philip presided over one of Hong Kong's most turbulent economic decades from 1971 to 1981 as financial secretary, when he became known as choy sun - or 'god of fortune'.

He was then promoted to chief secretary after Sir John Bremridge took over Sir Philip's post. He stayed in the top job until 1984.

As financial secretary, he was most renowned for deciding to let the dollar float in late 1974 after a stock market crash and pressure from a weak US dollar. It immediately rose.

'He guided Hong Kong through a financially very tough period,' said Denis Bray, a former home affairs secretary.

Sir David Akers-Jones, who took over as chief secretary in 1985 from Sir Philip, said: 'He put numbers on what before had just been general principles, he set up established percentages we should follow in public expenditure and its relationship to GDP.' His disciples included current head of the Hong Kong Monetary Authority Joseph Yam Chi-kwong, who said in London last night he regarded Sir Philip as his mentor.

Sir David said: 'I think in doing that he laid down the foundation for the recent prosperity. I'm sure our present Financial Secretary and other officials managing the economy, whether they know it or not, still follow the guidelines he established.' Sir Philip saw his greatest achievement as the 1975 Budget, which delivered cuts to government expenditure at a time of record unemployment.