CONFIDENTIAL

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you the compliment of believing you well able to

manage your own affairs within the limitations of

your constitutional position. This has always

been the tradition. I have only to look around me to

see that it has worked out petty well. Our

principal political concern is that social progress

should match your economic growth. This, I know, is your Government's objective and it already

has many achievements to ts credit in this field.

This is the only sound basis on which a thriving

and industrious community such as yours can be

have the night to feat. -only upon steady growth in the Promary that social In ther selling)

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Government

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this air fur

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out

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But I am also responsible for the external

in hangen shaved relations of the United Kingdom (I want to speak

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and also for all our cron fecfles

to you about two of the international developments

which I consider among the most important at this

time, the enlargement of the European Economic

Community and the seating of China in the United

Nations. Both of these are of the greatest

significance to Hong Kong.

7.

Jerotron d

We in

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be funly

"Baila"

Our Treaty of Accession to the European

Economic Community has just been signed, and will

be full members in under a year.

for entry we kept in the closest

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In the negotiations

touch with the

Hong Kong Government and fought hard for Hong Kong's

that over the years interests and that, I hope will turn out to be

Association with them the largest trady com FF group I world intersattsfactory results for Hong Kong.

pudes li

use that in this respect you have little to fear

for the future

He expect that within the Common

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