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and order, and this took the form of a partial, though only partial, amnesty over corruption cases. The impact of this concession-because concession it was-was blurred through the folly of the leaders of the Police in rejecting its partial nature and threatening progressive non-enforcement of the law until a total amnesty was granted. Until that point public opinion had been ambivalent, but against such an outrageous demand it was possible to organise a public reaction so strong that the leaders immediately caved in. Since then on the surface there has been comparative calm.

11. The Force remains highly disciplined and effective in its normal duties. Corruption on a major scale no longer exists in it, or in Hong Kong. The partial amnesty has lifted fear of prosecution for old--but of course not current-offences from all but a handful of not more than 200 men in the Colony. It was these men, interdicted from duty while under investigation, discontented and frightened, who were at the heart of the events leading up to this amnesty. These events included the plausible demand for the formation of a Junior Police Officers' Association, which was granted. The issue that must be settled in the next few months is whether the Junior Police Officers' Association will devote itself to the cause of these 200 and thus precipitate another confrontation with the Government, or concern itself with the conventional subjects for such an Association. The sooner this issue can be settled the better. Unfortunately legal complexities have delayed advice as to what action against the men is possible and this delay has provided some spurious sympathy for them certainly in the Force and perhaps amongst the public. The health of the Force requires that most of them be got rid of as soon as possible, and that where charges can be laid they should be. Once this potentially dangerous problem has been disposed of the basic trouble should be over. With the help of the advice of a police team from London led by one of Her Majesty's Inspectors of Constabulary, the administrative and other defects of the Service can be gradually corrected. On the other hand the strength of the ICAC is now so great and its prestige so high that it can be relied upon to monitor and prevent any resurgence of corruption.

12. I should make a final point. The pressure which this Government is applying to achieve rapid reform and improvement over a wide field is considerable. Paragraphs 4 and 5 indicate some of the fields of action this year. Pressure and change of this intensity in such a confined space as Hong Kong carry risks. At the turn of 1976/77 there was a serious backlash about the pace of labour reform and increase in rates. It was averted. This year there has been a near- mutiny of the Police. It has been contained so far. The conversion of much of Hong Kong into a vast construction site with all its discomforts and disruption, and the wholesale removal and rehousing of sections of the population could also give rise to an explosion. So could the pace of educational reform. It is of course a function of government to contain the risks that its actions involve, but the existence of these risks to a high degree in Hong Kong at this time should be noted. Personally I believe them to be acceptable. Through no fault of its own this Government has a long way to catch up and the pressure of the 1980s will soon be on us, consequently we must be a government in a hurry. While it behoves us to watch our step, there can be no question of any slackening of pace. 13. I am sending copies of this despatch to Her Majesty's Ambassadors in Peking and Tokyo and the High Commissioner in Singapore.

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I have, etc.,

C. M. MACLEHOSE.

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