TOP SECRET
cli
(v) Meanwhile we need to keep a firm front about our
intentions to remain in Hong Kong, both for the sake
of maintaining confidence in the Colony and because
any sign of weakening resolve on our part would lead
to increasing Chinese pressure.
(vi)
(vii)
(viii)
in
At the same time we need to consult with the Governor
on the shaping of future domestic policy given that,
the long term, the Colony will return to China. This
faces us with a real dilemma, since if the population
are accustomed to liberal Western-style social
policies they will be less easily re-absorbed in a
communist China; yet to deny those policies would be
both morally repugnant and provide fertile ground for
communist exploitation.
In any case, since the opportunity to lay down our
responsibility may not occur for a decade or more, it
would be prudent to undertake some preliminary study
of the steps we might have to take to prevent a
premature decline in confidence in the Colony.
In this context Hong Kong's prosperity is of major
importance to the UK and account must be taken of this
in situations where the economic interests of the UK and
Hong Kong appear to clash in the short term (e.g.
sterling balances and textiles).
Copies to: Sir A. Galsworthy
Tourch
(J. 0. Moreton) 19 March 1969.
Sir J. Johnston
TOP SECRET
4