30
Reference......
16
Mr. Combs
All this arose from your minute of 19 November to Mr. J.C. Morgan and is essentially concerned with the proviso contained in the last 11 words of that minute, viz. "provided a way can be found round the Hong Kong difficulties". Like Mr. Wilford I agree with Mr. Carter's views with the added rider to paragraph 10 of his minute that Hong Kong would also argue that our obligations under the UN Charter (to recognise the principle that the interests of the inhabitants of non-self-governing territories are paramount) are hardly compatible with the decision to treat any dependent territory less generously than we treat independent territories.
2.
The argument that Hong Kong does not need economic assistance which the proposed legislation about pensions would bring about, means in effect that Hong Kong is being penalised for pursuing a prudent financial policy to the direct advantage of the UK insofar as the reserves built up by that policy have been very largely invested here. This is no way to treat your creditors. It also ignores the fact that Hong Kong will have to meet a húmp of capital expenditure in 1972 which may well draw down the reserves considerably.
(L. Monson)
8 December, 1969