CONFIDENTIAL
K
There is, however, a new awareness, on both sides,
of a community of interest between Britain and
Hong Kong. It is the job of the servants of both
governments to foster this development, and they
are doing so.
4. Within Hong Kong a major concern of your
government is to associate the people with the work
of development within the existing constitutional
framework. The "Keep Hong Kong Clean" campaign is
a successful early example of this approach, for
which credit is due to all concerned. Your
government's social programme will also both
generate and require increasing public support and
involvement.
5. To achieve this development, however, you have
three main requirements; a healthy economy, an
efficient government machine, and a framework of
law and order. The economy of Hong Kong has always
been based on confidence, and hard work. The recent
activity in the Hong Kong stock exchanges and the
associated sharp rises in land prices and rents
have, however, disturbed the pattern of orderly
economic development. You are well aware of the
risks both of overconfidence and of recession.
Your government has taken and is taking action to
control the situation, but great care will continue
to be needed and a willingness to act in time to
forestall unhealthy developments.
6.
You are also tackling, with the help of your
consultants, the reorganisation of the government
machine to meet the needs of Hong Kong today.
/The present
CONFIDENTIAL
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