CONFIDENTIAL
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5. I further attach the Hong Kong Government's comments on the recommendations in the pamphlet (Hong Kong telno 61) I suggest that the comments on these recommendations which are primarily the Governor's concern are unobjectionable. There is, however,
one recommendation on which it falls to us to form a view. This
is that HMG should establish a Commission of Inquiry, with wide- ranging terms of reference and full power to call evidence etc, into conditions in Hong Kong and that thereafter a House of Commons Select Committee should be appointed to examine the annual and other reports of the Hong Kong Government and connected matters ie to monitor events in Hong Kong.
6.
I do not see that there is a case for establishing a Commission of Inquiry. The Governor keeps us fully informed about conditions
in Hong Kong, both by means of written reports and regular visits to this country. He reached a particularly wide audience on his last visit here. There is also a steady flow of visitors, particularly MPS, as well as Ministers and officials, to Hong Kong. There is thus no lack of knowledge about conditions there. A Commission of Inquiry would not reveal anything that was not already known. A more serious objection is that the establishment of a Commission
of Inquiry, however limited were its terms of reference, would probably lead to speculation that it was the prelude to a possible change of policy on the status and future of Hong Kong. That could have a damaging effect on confidence in the Colony and might have repercussions on the relationship China. If we were to contemplate a change of policy on the status and future of Hong Kong it would be essential to handle the matter confidentially.
7. Likewise, I see no advantage in the appointment of a House of Commons Select Committee on Hong Kong. On the contrary, it is difficult to see how such a Committee could avoid usurping the functions of the Legislative Council in Hong Kong. That would be undesirable in any case but more particularly when the Governor is proposing to widen representation on the Council. Moreover, the existing Defence and External Affairs Sub-Committee of the House of Commons Select Committee on Expenditure has recently considered Hong Kong and taken evidence covering a wide range of matters, including conditions in the Colony. I believe that the Sub-Committee is free to turn its attention to Hong Kong whenever it wishes.
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CONFIDENTIAL