NOTHING TO BE WRITTEN IN THIS MARGIN

almost

CONFIDENTIAL

A Butimi in decline could be nouve

Britain with the assuance

of Exfeanding

Ligon

Harket the level of economic activity in Briti

wa

will expand dramatically. The will be much to

your advantage. Secondly, liberal trading policies

generally serve our national interests best, and

we will have every incentive to pursue those

policies when we are members of the Community.

8.

As I see it, in the Common Market Hong Kong's

interests are not opposed to those of Britain. They

will be satisfied by just the same policies as will-

satisfy Britain's

9.

bant complementary

Now a word about China.

Hong Kong is acutely

aware of what goes on in China.

Hong Kong has a

unique talent for playing a role that offers benefit

to all and harm to none.

10.

For my part I welcome unreservedly the seating

of the People's Republic of China in the United

Nations. The United Kingdom was the first western

Government to recognise China, and we have for long

believed that the facts of internationd life

required that she should take her rightful place

in the Security Council and the General Assembly.

11. Let me say that these developments are not

related in any way to the status or future of

Hong Kong. On the contrary you have every reason

to be thankful for the ending of an injustice and an

anomaly which was a major source of friction and

misunderstanding in the world, and in particular

in this area.

that

12. I would like to say how glad I am that

Sino-British relations have steadily improved in

recent years.

Both countries have much

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