CODE 18-77

SECRET

Mr Cortazzi (D.U..

#88)

20/i

THE FUTURE OF HONG KONG

1.

I must say that the Governors despatch strikes me as just what is needed on the external side. It is easy to read and seems to me to get everything right.

2. As far as our policy for the next few years goes, I do not think the correct line can be summarized better then in paragraph 21 but the whole argument rests of course on the assumption which leads into paragraph 11:-

"If the Chinese continue to give the greatest weight to economic factors .....

This looks more and more like being the critical question, more especially in the light of the debate which is now raging in China about whether Chairman Mao's basic directives have been distorted

by placing the prime emphasis on economical progress.

19 February 1976

cc: Mr O'Keeffe (HKIOD)

SECRET

كناس

Bentley

Far Eastern Department

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