Mr Cortati
PS/Lord Goronwy Roberts
CONFIDENTIAL
I have autod
HONG KONG REVISITED MR MCLAREN'S REPORT
HKK 026 RECEIVED IN REGISTRYNO. 51 -7 DEC 1978
No
*ction Ton
1. I think Lord Goronwy-Roberts would wish to read this measured report by the Head of HKGD. When we consider, as we have to, how much remains to be done in Hong Kong in the next two decades, it is worth remembering how far the Colony has advanced already in terms of social and economic progress. What is striking, given the degree of essential managerial involvement from the United Kingdom, and given also the large areas of human activity where the thought-processes of Chinese Hong Kong are radically different from those of socially-committed Britain, is just how well the Whitehall- Hong Kong relationship has stood up despite the stresses of the last few years.
2. I make no comment on the various specific issues that Mr McLaren has touched upon, except for one aspect to which I believe we need to give more thought particularly during the briefing discussions with the new Governor which I imagine will take place around the middle of next year. This is the degree of management of the economy which is both desirable and achievable in the next two decades and in circumstances of a new sort of relationship with China. Mr Newbigging's comment, that any further direct intervention would have to be taken very slowly, is typical and reasonable. But I do not personally believe it is right. We shall need to examine very carefully the report of the Advisory Committee on
Diversification and, analytically, the Hong Kong Government's comments on it.
Dallmay
DF Murray
87
20 November 1978
cc Sir A Duff
PS/PUS HKGD
1. I agree with Mr Murray that this is a good report and brings out the striking changes which have been made in Hong Kong in recent years. I also agree with Mr Murray on the question of intervention in the economy.
CONFIDENTIAL
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