NOTHING TO BE WRI

TEN IN THIS MARGI

12.

At the same time we need to consult with the

JECRET Governor on the shaping of future domestic

الكريم

policy given that, in the long term, the Colony

will return to China. This faces us with a

real dilemma, since if the population are

accustomed to liberal Western-style social

policies they will be less easily re-absorbed

in a communist China; yet to deny those

policies would be both morally repugnant and

provide fertile ground for communist

exploitation.

13. In any case, since the opportunity to lay

down our responsibility may not occur for a

decade or more, it would be prudent to under-

take some preliminary study of the steps we

might have to take to prevent a premature

decline in confidencein the Colony.

14.

In this context Hong Kong's prosperity is of

major political importance to the U.K. and

account must be taken of this in situations where

the economic interests of the U.K. and Hong Kong

appear to clash in the short term (e.g. sterling

balances and textiles).

/secbring Noterra.

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