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LETTER

Type 1 +

From

His Excellency

Sir David Trench, GCMG., MC.,

Government House,

Victoria,

Hong Kong.

Secretary of State

Telephone No. & Ext.

Department

The Prime Minister was most interested in what he

was able to see of Hong Kong during his brief visit

to the Colony in January this year. He has asked me to pay particular attention to the affairs of

Hong Kong and I have been discussing the situation

with Anthony Royle.

The attitude of the Chinese People's Government is, of course, the vital factor. We cannot

contemplate the introduction of measures normally

associated with constitutional development in

dependent territories, no matter how much progress Hong Kong may make in other directions. At the same time, the more the economy grows the more difficult

it will become to administer the Colony within the

framework of a Crown Colony constitution. In this

difficult situation we have been considering whether

there are any particular problems that need special

attention.

Although on paper the constitution of Hong Kong gives the British Government full power over every governmental activity in Hong Kong that in itself is

no reason why HMG should exercise powers which they

would not want to exercise. That was the approach

adopted when consideration was given here to the proposed delegation of authority on non-cotton textiles and it is the approach that we shall follow whenever

possible. I hope to be able to send you soon the text of this delegation in the form in which it has been agreed with other departments. I think you will

find that it gives you what you want, but I shall be

glad to consider any amendments you may wish to suggest

Air traffic rights are another source of difficulty between Hong Kong and the United Kingdom. Here again,

/ we are

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