CONFIDENTIAL

3.

stresses and changes in personalities cannot be

foreseen, and at the end of which some understanding

must be reached about the future of the Colony. I

am acutely conscious of the need to strengthen the

Colony against the strains to come. But all the

programmes and policies of the Hong Kong Government

are already directed towards achieving a degree of

economic strength, social cohesion and international

respectability which will be beneficial to the

people of Hong Kong, acceptable to HMG and favourable

to China, and this is all that it is within the

power of the Government to do. But the death of Mao

and the beginning of a new era in China underline

the need to do it and do it quickly.

Xthe

T. C

In the early part of the year, in

preparation for the Secretary of State's visit to

Peking, a careful review was undertaken of how the

future of Hong Kong should be handled with China.

was concluded that any discussion would be premature and

subsequent events have shown the correctness of this

#

view.

It

The complementary proposition was that mean-

while the policies of the Hong Kong Government, for

which HMG must answer, must be understood and defensible

in Westminster as well as Hong Kong. A protracted

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