CONFIDENTIAL
7.
These and similar points of friction are not
important on their own, but there is a substantial
cumulative effect on our control of Hong Kong.
Diminishing control of loyalties also affect our
trade to Hong Kong, including our chances of securing
the £600 million underground railway contract for
British firms.
8. I therefore ask my colleagues to agree that
we have an interest in meeting the wishes of Hong
Kong, as expressed to me by the Governor, even at
some cost to ourselves. The weighing of our interest
must of course be a matter of judgement in each
instance; but in the specific cases of the Community's
GSP and of air services to Hong Kong, I believe we
should try quite hard to meet Hong Kong's demands.
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