CONFIDENTIAL

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5.

The only multilateral question which Sir Y K Kan may raise

is the question of a Chinese Representative. This would have been

raised by the Chinese Government with the Prime Minister if he had

gone to Peking, and unofficial members of Executive and Legislative

Councils (UMELCO) would have demanded reassurance on his subsequent

visit to Hong Kong. If asked Mr Blaker could reassure Sir Y K Kan

that there has been no change in our policy. This policy is set

out in an aide-mémoire which the Secretary of State gave to

Chi P'eng-ei in June 1973.

General Line to Take

6.

Mr Blaker has only recently taken over responsibility for

Hong Kong and will have to bring himself up to date on the complex

bring

of our bilateral relationships. There have clearly been difficulties and these continue. But underlying this is HMG's general support

2

But

for Hong Kong. A recent example is the arrangements we have been

able to make to help to assure Hong Kong's supplies of oil from

Saudi Arabia And even where we have not achieved everything that

Hong Kong would like, such as on GSP, there have been good reasons

for this, which Britain's friends in Hong Kong should respect.

Members of Executive Council are frank with us when they believe that

Britain should do more for Hong Kong. We expect this. But it is in

there are also good reasons for Hong Kong's interest that they should understand the actions of the

British Government, and should be ready to explain and defend them

in public and in private.

11 January 1974

Сс

Sir D Watson

ACSE

A C Stuart

Hong Kong & Indian Ocean

Department

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