CONFIDENTIAL
attack, local opinion regards the existence of British
troops stationed in Hong Kong as an assurance of our
intention to maintain our position in the Colony. The
principal role of the Garrison is to assist in maintaining
internal security and local confidence: if either were to
slip the Chinese People's Government would be quick to
exploit the situation and our position could rapidly
become untenable. Relations between HMG and the Hong
Kong Government have been at a low ebb for some years.
The Colony's unique position is largely responsible for
this. Although, in economic terms, Hong Kong is by any
standards both mature and highly sophisticated there can
be no constitutional progress towards self-government in
the Colony since there have been frequent and plain
indications that the Chinese People's Government expects
the constitutional status quo to be maintained.
10. Hong Kong's remarkable record of economic expansion and
material progress in the last decade has engendered a
strong feeling in the Colony that Hong Kong knows best what
is good for it and in particular for its rather unique
economy. The unofficial members of Legislative Council,
supported by public opinion as expressed in the non-
communist press, are therefore inclined to argue that
Britain should not interfere in local affairs. However,
the constitutional position being what it is and must
remain, HG cannot abrogate their responsibilities to
Parliament for the administration of the Colony.
11. Future relations between HIIG and the Hong Kong Government
will depend almost entirely on the extent to which the
/Hong Kong