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Resentment at what is regar- ded as inter- ference by Britain in

local affairs

Clash of interests in the field of international Textile Policy

and relationship which should subsist between a Colony and

the responsible power.

7. At the same time, the Colony's remarkable record of

economic expansion and material progress in the last decade,

achieved with the minimum of outside aid, has induced a

feeling of confidence among those who play a prominent part in

public affairs that, but for the complication of China, Hong

Kong would be capable of standing on its own feet and, more

than any territory which has been granted constitutional

advance, of sustaining self-governing status. 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.

There is a strong attitude in the Colony that Hong Kong knows

best what is good for it and particularly for its rather unique

economy.

8.

There has been a clear emergence of a clash of interests

in the field of international textile policy between Hong Kong

as a major exporter of textiles and the UK as a major importer

and domestic producer and this led Hong Kong to press for the

maximum possible freedom in the conduct of the Colony's

commercial relations. However, Hong Kong officials now have

a better appreciation of the extent of our efforts to help

Hong Kong in their international trading relations and

informed opinion in the Colony seems to be content with the

present situation as they consider HMG will almost always in

/the

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