CONFIDENTIAL & PERSONAL
And
Hong Kong enjoys and which is essential to its export trade. as the economy grows both in size and sophistication, Hong Kong will have evident need for a higher level of public expenditure in
order, for instance, to support greater educational provision
necessary to produce a more highly trained and skilled labour force.
8. In passing, the PUS might compliment Sir Y K Kan on the helpful role we know he has been playing in the Governor's plans to widen the social basis of the Legislative Council.
ป
9.
10
Flags, Flag, 13)+(8)
G & H
ON
ALL рккон
KKO"
14
The PUS might also care to express concern about what we believe to be an unacceptably high level of anti-British sentiment in
Hong Kong. He might say that a great deal of effort is put into the task of correcting misconceptions about the Colony in
influential circles here, in which the Governor plays a notable part.
However, much of the good work can be undone if, as seems unfortunately to be the case recently, prominent and influential British visitors to Hong Kong are exposed to ill-informed and even
hostile comment about Britain. Anti-British sentiment could be
corrosive of the link between Hong Kong and Britain on which the
existence of the Colony depends. The Colonial Secretary recently made a forthright and courageous speech on this matter and we hope Unofficials will support the Hong Kong Government's efforts to promote better understanding.
10. Sir Y K Kan may, in his reply, refer to the harmful effects of Mr Hooley's two Parliamentary Questions inquiring into the financial interests of Unofficials in organised prostitution and gambling. The story is told in Hong Kong telegrams nos. 159 and 160; in our telegrams nos. 110 and 118 and my letter of 16 February to Mr Higginson. The PUS might like to draw on these as necessary, particularly the formula in paragraph 2 of our telegram no. 118 which was, in fact, used when the matter was aired in the Legislative Council.
-4-
CONFIDENTIAL & PERSONAL