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PS / Lnd fermwy. Roberts Sorning Rai 24 Sir D. W klodept) wy.

Melfor Mi

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Secretary of State

HONG KONG

Have a good insit. I am very,

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They screwed urcite egnfattetic to the financed proble Hory Kay They screwed

of Eit Hey can afford it. FigE

Govewar in doing a good jor with his schemes

1. David Ennals, Tom McNally and find over with but forgle

20 December.

with the Governor of Hong Kong, whom you may be seeing on

antaxation

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ite

2. I am satisfied that we are still broadly on the right for lines of policy, though during my own visit to Hong Kong in January I will be able to have a more detailed look at many of the problems we have been discussing. Despite the alarmist views of some of Hong Kong's parliamentary critics I believe that the Governor's social development programme is tackling the right schemes in probably the shortest time table possible in present circumstances.

3. There are some signs that parliamentary criticism is now less acute because better informed. Written Answers to PQs have helped and I have met the Foreign Affairs Group whose perspectives are now much truer. I have also arranged to meet them again after my Hong Kong visit.

Fortiz.

frouts

4. On the labour front there has been substantial progress with legislation during the last year. Trade unionists in the colony of all shades of opinion will be given the opportunity to see me during my visit. But as far as the TUC here are concerned, it was noticeable at the meeting of the Overseas Labour Consultative Committee which I held on Monday, that the Trades Union representatives did not challenge the pace and direction of labour affairs in Hong Kong.

5. The Governor's main problem is that Hong Kong has run into a recession and severe budgetary difficulties before his expensive social programmes have got properly off the ground.

RoR to Mr Stuart OIR, ? for PA.

/ In 1975

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