CONFIDENTIAL

HONG KONG

Hong Kong in 1970:

resemblance is remarkable.

England in 1870. In many ways the

The industrial revolution, pushed on

its way by private venture with the spur of quick profits:

hypocritical attitudes towards sex and gambling;

with extremes of wealth and poverty

now as it was of England then.

2.

low rates of tax

all this is true of Hong Kong

Add to that, that the structure of the Hong Kong Government is

necessarily Colonial, with all that that implies, and the picture is

complete. Power in Hong Kong today lies in the hands of a few rich

men, and the glory in an OBE or an invitation to Government House.

3. On the surface the uncertainty of the Colony's future seems to

be virtually ignored outside Government circles. The British

Garrison clearly has a stabilising influence, and it seems that

behind this shield and with an efficient - if unimaginative –

Government which interferes as little as possible in local commercial

matters, most business men expect to get their capital back within

three to five years.

4.

Leaving aside the whole question of relations with China, which

is more a matter for Far Eastern Department than Hong Kong Department,

I came away with a feeling of uneasiness on three counts:

(a) although the economic development of recent years has

2

lifted the standard of living of the people generally, many

of the poorest families still live in appalling conditions

of urban squalor;

(b) there seems to be a growing desire among the post-war

generation for a greater say in the conduct of government

business a feeling that the policies of the Government are designed primarily to further the interests of the

wealthy industrialists:

/ (c)

CONFIDENTIAL

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