PRIME MINISTER
PM/73/70
CONFIDENTIAL
Mr. Amery
Mr. Royle
Lady Tweedsmuir
P.U.S.
Distribution:-
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{ID(1)/ {10(E) MITD. COPIES TO
11413/548/15
Mr wright / Robingon
/ Mr. White head/MTO Si D. Watson / Mr. Wilford
Mr. Ponson / UND
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Hong Kong
L*7
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I have recently had discussions with the Governor of
Hong Kong and I write to give you an account of the situation
there and of certain implications for our interests. On the
whole the Colony is doing well. The crucial relations with
China are on an even keel. Inside the Colony the economy
is sound and still expanding very fast. The Governor has
made a good start in developing Hong Kong into a place
where the ordinary people wish to live and work.
2.
I am, however, concerned about the state of Hong Kong's
relations with Britain, and the implications of these relations
for our interests. The problems need not be overstressed.
Official relations are good and the people in Hong Kong still
look to Britain. But there are areas of strain, arising
from the fact that Hong Kong is a modern industrial society
in its own right, but without any hope of constitutional advance.
3. The discussions with the Governor have highlighted the
difficulties which face him at present, bearing in mind that
public and press opinion in Hong Kong and in particular some
CONFIDENTIAL
/of his