NOTHING TO BE WRITTEN IN THIS MARGIN
W(B)L 51-7406
15.
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HMG fully realise that despite Hong Kong's
spectacularly booming economy, the Colony's
future trading position is to a considerable
degree dependent on external factors over which
the Hong Kong Government can exercise little
HMG have been doing and will continue
to do their best to minimise the pressures which
may develop against the Colony's economy as a
result of these factors. If these pressures
control.
were to develop to such an extent that Hong
Kong's economy were seriously threatened, a new
situation would have been created and this
would have to be considered both by the Hong
Kong Government and by HMG in the light of the
circumstances at the time.
6. The views of the unofficial members as
expressed in paragraph 10 of their memorandum
are noted and it is recognised that there are
strongly held views on this subject. HMG
appreciate also that Hong Kong's situation was
such that devaluation resulted in the Colony's.
sustaining losses in 1967.
7. It is true that when Mr Heath, as Leader
of the Opposition, visited Hong Kong and the
Far East during January 1970, he mentioned the
figure of £300 million in relation to Britain's
earnings of foreign exchange from Malaysia and
Singapore. Mr Heath was speaking in the context
of general defence policy East of Suez and the
figure of £300 million did not relate to
Hong Kong.
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