CONFIDENTIAL COVERING SECRET
HONG KONG
Basic Problems
1. The attached document was prepared in June 1970 for the incoming Government. The original document was graded "Secret" because it contained a few paragraphs on defence and internal security. These paragraphs are also attached, but on a separate piece of paper.
2. The following comments bring these Notes up to date: Paragraph 6. I think it would be true to say that there has been
a slight improvement in the position at least so far as British
officials in the Colony are concerned in recent months. Paragraph 8. During the summer and autumn of last year we made a determined effort to reach agreement both in Whitehall and with Hong Kong on the terms of the delegation of authority to the Colony in commercial matters. Recently, however, the Hong Kong Government have been dragging their feet over this. I think this change in attitude (although I am not sure that it is held by the Governor himself) has come about as a result of a better
appreciation by the British officials concerned of the extent of
our efforts to help ilong Kong in their international trading
relations. My own view is that the majority of informed opinion
in the Colony is now content to leave things as they are because
they think HMG will almost always in the last analysis do what they in Hong Kong consider should be done in the interests of the Colony. I myself foresee difficulties, particularly in the GATT, if we are successful in joining the EEC, and I believe that we should explore further the possibilities of giving the Hong Kong
Government more freedom to look after their own affairs. I intend
to pursue this./
+
Paragraph 10. I believe that Hong Kong officials, at any rate, now
have much more confidence in the FCO than they had a year or so
ago.
Paragraphs 11-15. Sino/British relations noticeably improved
over the last six months. The main obstacle towards further improvements is the continued detention of some seventy
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CONFIDENTIAL, COVERING SECRET