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a man of great influence and I knew that he was aware of this

problem and seeking to mitigate it. But it was a mistake for

eager businessmen in Hong Kong to underestimate the potential

strength and resilience of the British economy and the British

people. A continuation of the current climate of relations

could only be harmful in the longer term. I hoped that he would

do what he could to correct this.

6. He took the point well. He said that we should not over-

estimate the extent of feeling of this kind in Hong Kong. But he

would encourage all contacts between Britain and Hong Kong that

enabled the facts to be established. In particular, he attached

importance to continuing visits to Hong Kong by British MPs and

other people of influence (even if they were not always 100 per cent

satisfied with what they saw). Equally, he thought that there was

scope for more visits to Britain by members of the Hong Kong

Legislature, etc. In this context he complained that for the past

two years Hong Kong had not been invited to meetings of the

Commonwealth Parliamentary Association. He asked whether anything

could be done to rectify this. I undertook to look into this: and

I shall be grateful to know what the position about it may be.

7. The whole conversation was friendly and Sir Y K Kan made no

attempt to criticise along the lines that my brief had suggested

he might.

7 June 1976 Chief Clerk Mr Larmour

Michael Palliser

Mr O'Keeffe

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