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6.
The other side of the coin is the Hong Kong case here.
(a) The FCO, especially HKIOD and those officers like myself super-
vising the department obviously have a role to play but we are not the Hong Kong Embassy in London and our first loyalty is to HM Government in the United Kingdom. Not perhaps surprisingly the Hong Kong establishment do not begin to understand the FCO system particularly the dichotomy at DUS level.
(b) The Hong Kong Government representative in London. functions are primarily technical, recruiting etc.
But his In any
case he has neither the stature nor status to get himself in at the right level. I have toyed with the thought of suggesting a high level unofficial Chinese to represent Hong Kong, but I do not think that for obvious reasons this would work.
(c) Hong Kong Government officials and business visitors from
Hong Kong. But as they do not apparently believe in our system and are not "diplomats" their efforts may well be counter- productive.
(a)
(e)
The Hong Kong Association, the Hong Kong Trade Advisory Group etc. But none of these organisations seem able to make much impact.
The most effective representative has been the Governor but his job is primarily in Hong Kong.
Again I do not know the answer but the problem clearly needs more thought.
7.
Representation is not of course the only question. There are major problems of substance. Should we for instance regard Hong Kong as another colony (however special because of its position in relation to China and with an essentially Chinese population) as a place where we should for humanitarian if for no other reasons enforce higher standards of social welfare? For instance:
(a)
Why should Hong Kong with considerable numbers of wealthy people have such a low tax, not to say regressive, tax structure?
Is the glib answer that this is necessary to encourage invest- ment in an uncertain future an adequate answer?
(b) Why does not Hong Kong adopt an unemployment insurance scheme?
Is it really an answer, as the acting Financial Secretary suggested that the Chinese employee would not want to have to contribute. Anyway he was looked after by his family who could get welfare payments (not incidentally at all generous by our standards).
(c) Why does Hong Kong with all its resources insist that the Housing
Authority pay its way its only subsidy being cheap land and
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