Arthur Grenfell Clarke
Encyclopedia
Arthur Grenfell Clarke CMG
was a government official in Hong Kong
who rose to hold the position of Financial Secretary from 1952 to 1961. He was the first of three successive financial secretaries whose support for free market
economic policies helped turn postwar Hong Kong into a thriving economy
.
, he was Commissioner of War Taxation.
After the war, he became Deputy Financial Secretary
, holding the post from 1945 to 1951. He then took over as Financial Secretary when his predecessor, Sir Geoffrey Follows, retired at the end of 1951.
He held the post of Financial Secretary during the 1953 Shek Kip Mei
fire, which led to the government's rapid introduction of a public housing
programme: within three years some 200,000 people were so accommodated. Public spending increased from HK$285 million in 1952, when Clarke took up the post, to $1,072 million in 1961 when he left. Nevertheless, taxes were not raised, with the standard rate kept at 12.5 percent throughout his tenure, yet the government's finances were consistently in surplus as a result of Hong Kong's growing economy. Indeed, the territory's reserves increased from $219 million to $412 million under his stewardship.
Like his two successors, Clarke tried unsuccessfully to introduce a normal (full, schedular) income tax
.
In 1961, he raised property tax from 6.25 percent to 12.5 percent, following a failed attempt seven years earlier, under opposition from the Chinese business community.
Order of St Michael and St George
The Most Distinguished Order of Saint Michael and Saint George is an order of chivalry founded on 28 April 1818 by George, Prince Regent, later George IV of the United Kingdom, while he was acting as Prince Regent for his father, George III....
was a government official in Hong Kong
Hong Kong
Hong Kong is one of two Special Administrative Regions of the People's Republic of China , the other being Macau. A city-state situated on China's south coast and enclosed by the Pearl River Delta and South China Sea, it is renowned for its expansive skyline and deep natural harbour...
who rose to hold the position of Financial Secretary from 1952 to 1961. He was the first of three successive financial secretaries whose support for free market
Free market
A free market is a competitive market where prices are determined by supply and demand. However, the term is also commonly used for markets in which economic intervention and regulation by the state is limited to tax collection, and enforcement of private ownership and contracts...
economic policies helped turn postwar Hong Kong into a thriving economy
Economy of Hong Kong
As one of the world's leading international financial centres, Hong Kong has a major capitalist service economy characterised by low taxation and free trade, and the currency, Hong Kong dollar, is the ninth most traded currency in the world. Hong Kong has remained as the world's freest economy,...
.
Early years
Clarke came to Hong Kong in 1930. From 1940 to 1941, in the period up to the Japanese invasionBattle of Hong Kong
The Battle of Hong Kong took place during the Pacific campaign of World War II. It began on 8 December 1941 and ended on 25 December 1941 with Hong Kong, then a Crown colony, surrendering to the Empire of Japan.-Background:...
, he was Commissioner of War Taxation.
After the war, he became Deputy Financial Secretary
Financial Services and the Treasury Bureau
Financial Services and the Treasury Bureau or FSTB is a part of the twelve policy bureaux for the Hong Kong Special Administrative Region. They are responsible for developing and executing government policy on finance and treasury. The agency is establish on 1 July 2002...
, holding the post from 1945 to 1951. He then took over as Financial Secretary when his predecessor, Sir Geoffrey Follows, retired at the end of 1951.
As Financial Secretary
Clarke oversaw Hong Kong's finances during a period of dramatic economic growth, and an expansion of the reach of government, which had hitherto had a skeletal role in the lives of most Hong Kong residents. Nevertheless, like most of his predecessors and successors, his principles were that the government should exercise minimal intervention in the practical economic activity of the territory.He held the post of Financial Secretary during the 1953 Shek Kip Mei
Shek Kip Mei
Shek Kip Mei, originally known as Kap Shek Mi, is an area in New Kowloon, the North Eastern Kowloon Peninsula of Hong Kong.-History:A major fire on 25 December 1953, destroyed the Shek Kip Mei shantytown of immigrants from Mainland China that had fled to Hong Kong, leaving 53,000 people...
fire, which led to the government's rapid introduction of a public housing
Public housing
Public housing is a form of housing tenure in which the property is owned by a government authority, which may be central or local. Social housing is an umbrella term referring to rental housing which may be owned and managed by the state, by non-profit organizations, or by a combination of the...
programme: within three years some 200,000 people were so accommodated. Public spending increased from HK$285 million in 1952, when Clarke took up the post, to $1,072 million in 1961 when he left. Nevertheless, taxes were not raised, with the standard rate kept at 12.5 percent throughout his tenure, yet the government's finances were consistently in surplus as a result of Hong Kong's growing economy. Indeed, the territory's reserves increased from $219 million to $412 million under his stewardship.
Like his two successors, Clarke tried unsuccessfully to introduce a normal (full, schedular) income tax
Income tax
An income tax is a tax levied on the income of individuals or businesses . Various income tax systems exist, with varying degrees of tax incidence. Income taxation can be progressive, proportional, or regressive. When the tax is levied on the income of companies, it is often called a corporate...
.
In 1961, he raised property tax from 6.25 percent to 12.5 percent, following a failed attempt seven years earlier, under opposition from the Chinese business community.
Farewell
In his final budget speech, on 1 March 1961, Clarke offered advice that highlights the success of post-war Hong Kong:- "I expect, too, that my successor will make exactly the same mistake that I have always made. He will underestimate revenue. He will underestimate his revenue, because, like me, like so many of us, he will never be able to comprehend how new and successful industries can be created overnight out of nothing, in the face of every possible handicap; how new trade can suddenly start up in some way that has never been thought of before; he, like me, will never be able to comprehend how on earth our enterprising, ingenious, hardworking people can ever manage to accomplish so much with so little."