Mr Male
Sir D Watson
PS/Lord Goronwy-Roberts
F
डा
Overseas Labour
Adviser
FED
Mr Rushford Mr Dinwiddy PS/Mr Ennals PS/PUS PS
AKK 1/8, Flag AA 34
HONG KONG
1.
seeing the Governor of Hong The purpose of these talks
Lord Goronwy-Roberts will be Kong on 19 December at 10.15 am. will be to review the situation in Hong Kong as a preliminary
?
to Lord Goronwy-Roberts' own visit to the Colony in January. The Governor has informed us of 5 questions which he particularly hopes to discuss. These are:-
A) The death penalty in Hong Kong;
B) The defence costs agreement;
c)
The possibility of constitutional change;
D) The effects of the recession on Hong Kong and
implication
implements for the budget and social programmes; E) Labour legislation and HMG's attitude to it.
This is a difficult moment for Hong Kong's economy.
World trading conditions have worsened before the Governor's development programme has got off the ground. At the same time there is increased concern in the United Kingdom about the situation in the Colony, and particularly about social developments and labour conditions.
2. The Governor's programme is best set out in his survey at the opening session of Legislative Council on 16 October 1974. The substance of this survey is that progress is being made in carrying forward the Government's expansion programme, but that economic problems are making it increasingly difficult to find the money for this programme. There is also a threat of recession, which has increased since the Governor's speech and which could attack the underlying philosophy of economic expansion on which Hong Kong is based.
3. I attach briefs on the topics which the Governor wishes to raise together with the associated papers. I have avoided making definite recommendations on the policy which should be adopted, since these decisions will emerge as the result of the talks with the Governor. 13 December 1974
AC
A C Stuart
Hong Kong & Indian Ocean Dpt.
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