but I think it is sometimes lost sight of in the legal and constitutional argument. Hong Kong is now a very significant trading entity in the world context. At the moment she ranks about twenty- third in terms of volume of trade and she is still

climbing the league. This year hor total visible trade (imports plus exports and re-exports) should come to about £2,200 million. This is about one eighth of UK visible trade which means that, with about a fourteenth of the UK's population, Hong Kong's trade per head is now almost twice our own. On top of that Hong Kong has a very considerable invisible trade shipping, insurence, tourism, banking, finance etc.) which is probably at least as large in proportion to her visible trade as is our own. No colony anywhere, no matter what its size, has even come near hitting these figures. We all know that, because of her special position, Hong Kong can never aspire to political independence. Heither we nor responsible people in Hong Kong want that. But this makes it all the more important to proceed as far as possible by consent with the local population, including the leaders of industry and commerce, in the external trade field. My experience of Hong Kong representatives at inter- national trade gatherings under my jurisdiction is that, contrary to some of our friends in other delegations, they are all responsible and able people who follow a sensible policy. I think that we must, as far as we can, adjust ourselves to their inevitable presence on the scene from now on, and give them more responsibility when it does not conflict with our own vital interests.

9. I am sending copies of this letter to Heath and Britten in the FOO, Dunnett in the Board of Trade, and Gregory in Mintech: I am also passing a copy to Lam (Board of Trade) who is here for the UNCTAD Board.

Ever,

(E. Melville)

CONFIDENTIAL

4.

developing, berendamas pakar de vagterna alaran semana derevan, served

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