SECRET & PERSONAL
2.
or both, losing for it what I believe is the substantial gain in public confidence and cohesion in recent years. However in the longterm as opposed to the short
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confidence in Hong Kong depends on the state of the economy, and in the final analysis it is the requirements of the economy by which we must be guided.
6.
This brings me to the first part of your letter. I hope you will include in my programme in London a talk with the Economic Adviser. I will also call at the Bank of England and am taking steps to remind them of my request to the Governor in the summer for advice. However I should be surprised if the advice that emerged was not to avoid any move that might introduce further elements of uncertainty or friction into a situation already abounding with uncertainties, but in which so far the traditional institutions of Hong Kong have coped tolerably well. The advice might of course be that the traditional institutions and instruments of control are bound to prove inadequate in the new situation, and that therefore an immediate if cautious programme of adjustment and modification should be put in hand but I rather doubt it.
7.
With regard to personalities, by the same token, this is no time for a change, and your letter makes clear that in any case none is possible.
Ym
M
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