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HONG KONG
5. Our biggest remaining colonial responsibility is long XME, which acanunta for over 90% of our present colonial population. Hong Kong in eitunted on lend lenged from China end there is no quentien, therefore, of itn ever becoming en indspondent State. It is a major enamely that an avowedly anti-colonial power like China should eentime to tolerate on its territory a colony administered by a empitalist power. But Hong Kong has considerable volus to China (over 30% of China's foreim exchange is earned through Hong Kong) ɛnd although the present Governant of China have never acknowledged the validity of the treaties under which Hong Kong was leaned to Britain, they are in no hurry to sne us leave. Their attitude is that the problem of Hong Kong is a legacy of history that will be settled when the time is right. In the meantime they are content for us to contimus administering the Territory so long na there is no question of any change in its statua.
6. Therefore, it is not porrible to introduce any of the normal democratio proconmos lending towards self-government. Hong Kong is governed by a Governor helped by departmental Secretaries, whom he appoints from among his corser offioAmIm and advised by Legislative and Executive Councils to which ha appoints both Official and Unofficial mambern. Yat long long in at the same time a sophisticated industrial and commerciel state, which ranks high nưêng the world'■ economie powers. The people who r it have come to exprat considerable culemony in the way they operate end believe that the results they hova nchieved fully justify that expectation. We, therefore, find it very difficult to toll thom what to do. Yot minh of Hong Kong'" economia end social syntem is based on principles that hava long since been abandoned in thin comtry. Thie mbeta of "foly is increasingly coming to the notion of people in thin co particularly in the Trade Unions eut crong certain ITu, vo prena us to inniat, for example, en the introciation of labour conditions in Hong Kong comparable with those accepted an norml in this country. The Governor is very conscious of the need for reform, and his record over the last six years is a testimony of his attachment to progress, But local opinion is afraid to
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