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move. Again, this is a matter which the Labour Members were obviously briefed on but, in my judgement, they will use the information they have obtained to embarrass rather than to help H.M.G.
One odd aspect was that there was no consciousness in the Colony of the colour problem and, when told that if we hang yellow men in Hong Kong but refuse to hang white men here or in Northern Ireland there would be the most imperial Parliamentary row, they could not believe that this could be so. A row is imminent: Whilst
we were there a man who had been convicted of thirteen murders in setting fire to a house had confessed to another murder, whilst in prison, of another prisoner. His case has come before the High Court on appeal and been dismissed. The man himself says he wants to be hanged. The Governor told us that the repeal of a previous case had been on highly technical legal grounds but he is going to be in very serious difficulty,obviously, very soon on this one. In addition to that another case is pending where two police officers were shot and killed and the conviction is on the cards in respect of the shooting of at least one of the police officers. This is obviously another case which would bring the Governor to the brink of resignation.
(c) Sterling Balances.
This matter blew up whilst we were in the Colony and many of the people we saw, especially businessmen, were pleading that Hong Kong's balances should be diversified by allowing them to put at least a greater percentage of their reserves in other currencies. The Finance Minister, who had just returned from Nairobi, was playing the thing very coolly and he was under such pressure that, very properly, he could not find time to talk to us about the problem. Both Elliott and I played off any questions on this matter but there is no doubt that pressure in the Colony is building up on this issue.
(a) E.E.C. Tariffs
A considerable row is brewing up about the situation regarding the import of textiles and shoes into the Community. We saw both textile manufacturers, the Chamber of Commerce, and the textile group about this matter and there is no doubt of their strong feelings. It seems that they do not get the generalised preference which is accorded to such countries