the proosss by which policies and decisions are

formed in Hong Kong. These are the people into whon

we have to instil some sense of reality. I attach

as Annex *}' a piece that, if substituted for

paragraph 8 in the talking points for use with

the public, would serve the purpose for this more

knowledgeable gathering.

4.

Finally, talking points for use with

Govornor and Officials. The general points

provide a satisfactory introduction, on the assump-

tion that by the time you arrive in Hong Kong the

Governor will have been fully informed about the

visits to the Community capitals. (This lattor

point we have checked with Western Economic Dept.

and understand that a full sccount is being

prepared and will issue shortly.) Bat we feel some

concern that the special Hong Kong points as

drafted should be so narrow in scope, concentrating

as they do on cotton textiles. We have re-drafted

this section (Annex *c*) to make the paints about

(a) the virtual certainty that Hong Kong would have

to compete in Britain over the Common External

Tariff, and (b) the dangers if an E.E.C. common

commercial policy were to follow a restrictionist

line.

5.

In conclusion I would like to emphasise

one point regarding brief's prepared for the S. of

S's use in Hong Kong, in case it was not brought

to your notice (it was made by Carter to Blair).

Copies of briefs have not been sent to the

Governor: it was never the Colonial Office practice

to do so. The reason is that we must regard and

treat the Governor as the head of a separate

Government, upholding and speaking for the interests

of the Colony as these are conceived locally. This

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