PERSONAL AND CONFIDENTIAL
I know of course that one consequence of the trans-
formation of Hong Kong from a trading to a manufacturing
contre has inevitably been an increase in the number of
cituations where there may be a clash between the interests
of liong Kong end the domestic interests of the United
Kingdom. In such situations we would regard it as a particular responsibility to see that Her Majesty's
Government took account of Hong Kong's interests and that they were always carefully weighed when decisions on policy
have to be taken.
It is important that we should be seen to be responding to the needs of a continuingly devoloping situction in the Colory.
There are in this connection three matters in the
social field whore an Luvance sooms to be both possible and important
(i)
Education
I believe that an early announcement of the introduction of compulsory primary education, free of charge, would do much to improve Hong Kong'o
"incge' both in this country and elsewhere. It
is my understanding that such an announcement would also meet with concral approval in the Colony itself
now that a new public assistance scheme has been
PLRSONAL AND CONFIDEN
/axnounced