CONFIDENTIAL
General
I think your conversations with Haddon Cave were most useful. shall be seeing him within the next few days and as we are on very friendly terms, I shall continue to encourage him on the same lines as you pursued.
I
I appreciate your difficulty in putting pressure to bear on the Hong Kong Government, especially in view of HMG's policy of enlarging the Colony's delegatal authority over external commercial affairs. Indeed, I have myself in conversations with visiting U.K. Ministers and FCO and DTI officials always advocated such measures with a view to reducing the friction which tended to arise from a divided approach and from Hong Kong' frustration at not always being able to influence policies which directly concern the Colony.
On the other hand, I think we have to remember that Hong Kong is not and never can be an independent country and, doubtless for very good reasons, Hong Kong is still run by an oligarchy of British officials and a few carefully chosen Chinese officials and non-officials. It cannot, therefore, be considered in any way a representative or democratic Government and in the final analysis the British Government is and must remain the responsible body. Where, therefore, a decision concerns major politico-economics matters which closely involves the U.K., I think there is every justification for HMG to step in and have the last word. This is surely the usual pattern for all devolution of power short of final abdication. I personally believe, for reasons I have already given, that the underground railway project is such a question.
JKB: jms
J.K.Blackwell
Senior British Trade Commissioner
3.
CONFIDENTIAL