primarily helping ourselves in the process of helping the Colony. Mr Royle thinks that this in turn would be bound to colour local attitudes towards Britain and might well create prejudices against the award of contracts to British firms.
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3. We cannot very well suggest amendments of the views to be attributes to Mr Wood. I am thinking in particular of the argument in paragraph 8. However, in my view the answer to that argument is that Hong Kong should not have set aside so much money for their reserves at a time when there is so much still to be done in the field of social services generally. shall be very surprised if there is not considerable pressure in the Legislative Council when the outcome of the present financial year is known for a substantial increase in expenditure in this field in particular.
I
3 February 1971
Eɣaria
E O Lairā
Hong Kong Department