CONFIDENTIAL

for enhancing the status of its Administrative Commissioner,

and I will of course air these in Hong Kong. But I would

like in any case to institute a radical review of the scope

and scale of Hong Kong representation in London. There

might well be advantage in the Hong Kong Government Office,

in addition to its present, quasi-consular activities,

taking over many of the functions now performed

considerable fee - by the Crown Agents and other bodies.

These might include not only recruitment and procurement,

but also some responsibility with regard to the huge

Hong Kong portfolio.

-

at a

If such an expansion took place a

director of the highest calibre would be pequired as well

as larger premises. In suggesting the foregoing I only

have in mind that the London Office should concentrate under

one roof the administrative and consular services that are

now split between a variety of bodies. In particular I do

not think that it should become a channel of communication

between the FCO and the Hong Kong Government. I think these

communications should continue to be direct, though the local

knowledge of the Hong Kong Government Office will always be

available to the FCO if required.

Budget procedures

24. So far Hong Kong has financed virtually all its capital

rapidly

works from revenue. But a point is ruefully being reached

at which decisions will have to be taken over the commitment

of far larger sums than have ever been involved before. These

include the Mass Transit scheme, a large desalinisation plant,

/the

12. CONFIDENTIAL

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