CONFIDENTIAL

Mr Cortazzi

1.

2.

This is a comprehensive and workmanlike set of proposals.

It is of course evident that the policy which Ministers have approved involves an additional workload and additional costs and travel. The job cannot be done without the resources. Mr Stewart does not suggest that the Hong Kong Department itself will need strengthening; my view is that this will prove necessary.

3. I was surprised by the number of outside experts that the Government of Hong Kong has taken from Home Departments on secondment, and from private organisations on a fee basis, since Sir M MacLehose introduced the system. Details are at Annex C. I was particularly interested to note that the list contains a Treasury official "to advise on economic policies" and 5 Bank of England staff concerned with economic policies, monetary affairs, and the banking and securities system in general.

4.

I recommend the paper be approved.

PREMale

10 September 1976

PS/Lord Goronwy-Roberts

Mr Larmour o.r.

Mr Lewis (GGD)

Mr Smith (Economists)

Mr Hurst

Mr Rushford

Mr Walker (POD)

Mr Moberley (PPD) Mr Lipsey

Mr Stewart fas

CONFIDENTIAL

P JE Male

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