NNNN CZCZC.
YY TWA
XI: 76 230824 DX A879
1545: PROMONGAID LONDON TWO: GIS 482/77 (ADD)
YBX738 23-0822 YHN309
FOR WHILE ON THE ONE HAND THE GOVERNMENT IN WHITEHALL HAS APPLIED INCREASING PRESSURE ON HONGKONG, PARTICULARLY SINCE SIR MURRAY MACLEHOSE BECAME GOVERNOR, TO IMPROVE SOCIAL CONDITIONS IT HAS TAKEN A LEADING PART IN THE EEC IN TRYING TO STIFLE THE GROWTH OF OUR MAIN EXPORTS.
NO ONE WILL DENY THAT HONGKONG'S COAIL CONDITIONS NEEDED IMPROVEMENT AND FULL CREDIT WILL BE GIVEN TO THE ENLIGHTENED POLICIES THAT HAVE BEEN INTRODUCED IN THE PAST SIX YEARS. IT IS FAIR TO SAY THAT MOST OF THESE WOULD HAVE COME INTO EXISTENCE ANYWAY EVEN WITHOUT BRITISH INTERVENTION. !
BUT AS BRITAIN SHOULD KNOW, MAJOR SOCIAL REFORMS IN HONGKONG CAN ONLY BE CUSTAINED BY A BUOYANT ECONOMY AND WHILE
WE MUST NOT EXAGGERATE THE EFFECT OF THE EEC IMPOSITIONS, CLEARLY CUR RESTRICTED POTENTIAL IN THE COMMON MARKET, COMING ON TOP OF AT LEAST ANOTHER YEAR OF SLUGGISH IF NOT DECLINING ECONOMIC ACTIVITY ON THE WORLD
SCENE, IS GOING TO MAKE IT DIFFICULT TO MAINTAIN THE MOMENTUM.
MORE
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ZCZC LTX4 79 2308 32 DXA684
YY TWX
1550: PROHONGAID LONDON THREE:
GIS 482/77 (ADD)
YCX441 23-0831 YHE685
HONGKONG CANNOT ENJOY THE SAME LUXURY AS BRITAIN OF LIVING BEYOND ITS MEANS YEAR AFTER YEAR AND RUNNING UP HUGE DEFICITS. AND FOR A COMMUNITY PLEDGED TO PAY ITS WAY IT IS ESSENTIAL TO TAILOR SOCIAL REFORMS TO ITS CAPACITY TO COVER THE COSTS.
HONGKONG DOES NOT ANT TO SCALE DO..N ITS PROGRAMME OF REFORMS AND INDEED THE WIDESPREAD WISH OF PEOPLE AT ALL LEVELS IS TO SEE IT EXPANDED AND IMPROVED, PARTICULARLY IN THE FIELD OF HOUSING WHERE THERE ARE HOPES OF ACHIEVING A SIGNIFICANT BREAKTHROUGH EARLY IN THE 1980S.
BUT THE POINT THAT HAS TO BE REPEATEDLY MADE TO THE BRITISH GOVERNMENT IS THAT THERE IS NO SUBSTITUTE FOR INDUSTRY AND EXPORTS AS THE ENGINE CAPABLE OF KEEPING THE ECONOMY IN TOP GEAR.
BRITAIN REGRETTABLY PAYS ONLY LIP SERVICE TO THIS VIEW.
MR. HADDON-CAVE IN HIS REPLIES TO MR. TIEN SAID YESTERDAY THAT HE BELIEVED THE BRITISH GOVERNMENT'S COMMITMENT TO HONGKONG REMAINED +AS FIRM AS EVER, + HE SHOULD HAVE ADDED +SO LONG AS IT DOES NOT CONFLICT WITH DOMESTIC INTERESTS.+ MORE
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