in any case in a strong position to promote its business
in a British administered colony.
7. The political arguments which my colleague has adduced
are naturally more difficult for me to assess. I am bound
to say, however, that it seems difficult to substantiate the
Hong Kong complaints of unfair treatment against the
background of their own success story; in other words, in
a situation where they have been able to achieve a
remarkable rate of economic growth and continually
augmenting reserves, the necessity for better treatment from
Britain either now or in the past cannot very well be
sustained. To a large extent their prosperity derives from
and depends on their status as a British Colony.
9. I have agreed this submission with Mr Royle in so far
as it embodies a statement of his position and advice and
I have copied it to the Secretary of State for Trade and
Industry in case he wishes to give his views before a
decision is reached; pending your views, we have not yet
consulted the Treasury.