CONFIDENTIAL

Argument

7. Royal Visits in general are a very effective manifestation of

the British connection; they help to reassure the local population of our continuing interest and are a fillip to confidence and morale. This is a particularly important consideration in the case of Hong Kong. The economic and commercial interests of the Colony and of the United Kingdom have tended to diverge in recent years; this has been particularly apparent in the field of trade in textiles. The

devaluation of sterling and other economic measures we have had to take

have also adversely affected our relations with the Colony. Public

opinion in Hong Kong, conscious of the Colony's remote and vulnerable

position in the shadow of China, has understandably been inclined to

seek some reassurance and to look for this in the value and strength

of the links with Britain. Because of these factors we have since

1967 been striving, in consultation with the Governor, to find tangible

ways in which we could demonstrate our interest and concern for Hong

Kong and generate some warmth in our relationship with the Colony.

One of the measures adopted for this purpose was the conferring earlier this year of the title "Royal" upon the Hong Kong Police and Auxiliary

Police Forces and the acceptance by Princess Alexandra of the

honorary appointment of Commandant General of the two Forces. A visit

to Hong Kong by Princess Alexandra would not only give widespread pleasure to the people of the Colony (Her Royal Highness is very popular there); it would also enable the Princess to be formally "installed" as Commandant General.

8.

There have been no official Royal visits to the Colony since

1961. Princess Margaret and Lord Snowden visited it in 1966 at Board of Trade expense in connection with "British Week" in the Colony; although they undertook some other engagements, this was not strictly a "Colony" occasion. Princess Alexandra and other

members of the Royal Family have paid private visits to the Colony

since 1961.

622brew 9.

Flag F

Although a special visit to Malaysia on its own could not be justified, there would be real advantage to us if Her Royal Highness

could make such a visit as part of a tour which also included Hong Kong Any such visit would, of course, depend on the receipt of an invitati on from the Malaysian Government and on there being no deterioration in

the security situation in Malaysia at the time.

CONFIDENT IAL

/ 10.

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