Mr O'Keeffe
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Mr Male
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Mr Larmour
Mr Bentley
THE FUTURE OF HONG KONG
HKK 014/3
1. 13 February which seems to me an admirable summary of the external side. As Mr Bentley has pointed out in a separate minute to me the whole argument rests on the assumption that the Chinese continue to give the greatest weight to economic factors. At the moment this seems to be the case and we can for the present continue on this basis but it may not always be so.
I have read with interest the Governor's despatch of
2.
The Governor asserts in paragraph 3 that Hong Kong is no diplomatic liability to the United Kingdom and no financial liability either. I should have thought this was going a little far. Hong Kong is surely a diplomatic liability vis à vis China and we may have diplomatic difficulties with Hong Kong and the EEC as well as Hong Kong and the United States if only over textile exports. Although the defence cats agreement provides for 75% of the costs being paid for by Hong Kong, the remaining 25% does amount to some liability. I wonder in this context to what extent Hong Kong would pay the additional costs which may have to be met in Nepal in future years to maintain Gurkha recruitment?
3.
There is a certain dichotomy on the question of conditions in Hong Kong. In paragraph 6 the Governor points out that if living standards on the mainland improve this might make the prospect of Chinese administration less frightening to the Hong Kong population. This might suggest that we should not move ahead with improvements in living standards in Hong Kong for fear that this would simply widen the gap. I do not think this would be acceptable in political terms here. Moreover the comment in paragraph 12(c) suggests that the wider the gap the more reluctant the Chinese might be to absorb a population whose standards of life would be so different to those on the mainland. Besides the Governor emphasised in the last sentence of paragraph 24 that Hong Kong must continue its present policy of improving standards of life in Hong Kong.
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адже
How Corliged.
HAH Cortazzi
20 February 1976
dr Milton P; 1/3.
Mr 15
Залучки Aard Berthy
I have taken theece paints into the draft.
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