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Mr Stuart Roelfellow as 12/2

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1.

Thank you for letting me see these papers. regards paragraphs 4 and 5, the performance of Hong Kong in its exports in 1973 to the EEC countries hardly suggests that such discrimination as exists is of crucial importance. I got rather tired of the argument in Hong Kong about the way Great Britain "treats her Crown Colony" when at every point we are reminded that Hong Kong takes its own economic decisions solely in its own interests whether it is the awarding of large international contracts or the handling of sterling. It seems to me that the Governor's despatch (paragraph 6) does not give due weight to Japan's continued discrimination against Hong Kong notwithstanding our representations. Nevertheless, and although Hong Kong has an unfavourable balance of trade with Japan and a surplus in 1973 of no less than £140 m. bat us Hong Kong's 'resentment' did not produce any bias in

1 favour of Britain. I think that many unprejudiced observers would think there was more cause for Britain to bear resentment towards some of Hong Kong's actions during 1973 than the reverse.

15 March 1974

G Foggon

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