CONFIDENTIAL
views within Hong Kong territory.
The recent devaluation crisis
provided a clear example of a divergence of interests between Hong Kong and Britain. Because H.M.G. has no full representative in Hong Kong, there was no-one who could explain the British point of view. There are in fact two D.S. officers at Grade 4 and Grade 5E level in Hong Kong but they are on secondment to the Hong Kong Government as Political Adviser and Assistant Political Adviser. To all intents and purposes therefore they are on the Governoris
There are staff and part of the Hong Kong Governmental secretariat. signs already that the Trade Commission is beginning to take on responsibilities far beyond the commercial/economic terms of refere- nce with which it is endowed. The residual Macao Consular functions, the appointment of an Information Officer to promote the British point of view and the recent up-grading of the Head of Post to Counsellor level are all signs that the Trade Commission is ceasing to be totally a "trade" Commission.
7.
Such an extension of functions would meet strong opposition. In the first place, there would be a number of people who would argue that the concept of a U.K. Commission with political as well as commercial/economic functions in a British Crown colony is a non sequitur. Secondly, we know that the Governor is anxious to establish an Office with rather similar functions in London to represent the
We must Hong Kong Government and this does not find much favour. clearly accept that the consequences of our broadening the functions of our British Commission will result in a reciprocal request from the Hong Kong Government. Finally, I suspect that on political grounds we might have difficulty with the Chinese in Peking if we set up a British political presence in Hong Kong.
8. As will be seen from the above, the present position of the Trade Commission is vague and untidy. I think that we should devote some thought in consultation with other interested Departments to
/the possibility
CONFIDENTIAL
CANADA OTURA