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and, most important of all, how not only to counter communist

propaganda in Hong Kong but to sustain the morale of the Hong Kong Chinese and bring them to an understanding of the purpose and policy of the Hong Kong Government.

As I mentioned earlier

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my impression was that there is at present a gulf between Government and people in Hong Kong which urgently needs bridging. I believe this "hearts and minds" problem has got

to be tackled much more vigorously and effectively.

not a job which can be done for Hong Kong from the outside,

24. To sum up: I think we must work more closely with Hong Kong, through the Governor, for the creation of a more

enlightened, progressive and flexible Administration which will be able to adapt itself to the present challenge.

must also see what technical and other assistance can be

given to the Colony and what other advice we can offer which

would help the Hong Kong Government to help itself.

We

25. There are other matters which I wish to report to you

verbally.

Distribution:

Mr. G. Thomas

Sir S. Garner

Mr W. Whitlock

Sir M. James

Sir A, Galsworthy

Mr. H. P. Hall

Mr. W. S. Carter

Mr. G. Foggon

Mr. W. A. Gaminara

SHEPHERD)

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