PERSONAL AND CO

CONFIDENTIAL

I know of course that one corse quence of the trans-

formation of Hong kong irom a trading to a manufacturing

centre has inevitably been an increase in the number of

situations where there may be a clash between the interests

of hong kong and 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 thet

they were always carefully weighed when decicions on policy

have to be taken.

It is important that we should be seen to be

responding to the needs of a continuingly developing

situation in the Colory.

There are in this connection three matters in the

social field where an advance seems to be both possible

and important.

(i)

_ducation

I believe that an early announcement of the

introduction of compulsory primary education, free

of charge, would do much to improve Hong Kong's

"inge' both in this country and elsewhere.

It

is my understanding that such an announcement would

elso meet with general approval in the Colony itself

now that a new public assistance scheme has been

/announced

PERSONAL AND COMFIÐLI

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