Original at:

HKCK 3/548/14

This Copy for: NKK 3) 548/15

46 ཙྪཱ སྶ,

Information only/Action on

Para(s)

PRIME MINISTER

PM/73/70

CONFIDENTIAL

Mr. Amery

мегу

Mr. Royle

P.U.S

Lady Tweedsmuir

M. wright / Robingon

Distribution-

HILOD TO ENTER FED

HND

210(1)/ EID (E)

MITD.

Mr. White hond/M TO Sir D. Watson/ Mr. Wilferd Mr. Pansons / UND

HKK J/145/17

Hong Kong

DAF

B

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.

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

3.

/of his

17

CONFIDENTIAL

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