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Rublo
Mr Male
SECRET
PS/Lord Gorony-Roberts
n. D
N. Crows
Dinfunddy
Mr. Stuart - Mas
Lord Gummy-Roberts
has seen.
PA
BD
24/6
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10
DESPATCHES ON HONG KONG
1.
2/%
the
In preparation for his visit to the U.K. next week, Governor has sent us two interesting despatches. A third is promised. The first is a broad political despatch on the current situation of Hong Kong, both internally and in relation to China. The second deals with the specific questions of inflation and falling real wages. The third will cover possible constitutional changes.
2. I find myself in almost total agreement with the objectives and with the analysis of the first despatch. The delicate balance with China is well described. There have always been two options for the present and future relationship with China; to try to make it explicit, by public discussion and even negotiation with the Chinese Government; or to accept it as quietly as possible, to avoid circumstances in which the Chinese would feel bound to try to change it, and to postpone negotiation or public discussion. The only argument for the first option is that changes within China might make negotiations in the future more dangerous than in the present. But the Governor argues persuasively that the interest of both China and Hong Kong is the status quo and that it would be pointless and probably damaging to try to change it in present
circumstances.
3.
He has written this before. His reason for reintroducing the theme now is to make the contrasting point that, while
we are wise to act with caution in political and constitutional affairs, in questions of social development, the Hong Kong Government has to be a Government in a hurry. I attach brief
SECRET
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