CONFIDENTIAL
180
situation in general operates to Hong
Kong's disadvantage.
Indeed it would not
be unreasonable to say that the basic
overseas confidence in the Colony's
stability and in its ability to pay its
way rests to a very large degree on the
constitutional relationship which Hong Kong
has with Britain.
(4) There may on occasion be a conflict between the trading interests of Britain and those of Hong Kong. This cannot be avoided. But the Secretary of State could assure the Unofficial Members that Hong Kong's interests can never be ignored by Britain in her efforts to seek fair and reasonable solutions to problems that may arise.
A