CONFIDENTIAL

Flag A

Flag B

Background Brief III

Economic and Social Developments in Hong Kong after 1980 and Chinese Policies towards Hong Kong

1.

Following the meeting of the Hong Kong Standing Committee in February, the Minister agreed that we should try to lay down broad targets for development in Hong Kong after 1980. The aim was to consider what policy objectives the Hong Kong Government should pursue now that most of the reco- mmendations in the 1976 Planning Paper have been implemented or at least set in train.

2. Mr John Stewart therefore drew up an outline which the Minister approved on 11 April. This was then put to the Governor, who agreed to use it as the basis for a detailed statement of social and economic objectives beyond 1980. We have now received the Governor's first draft.

3.

Broadly speaking, the Governor's paper at least meets, and on many points exceeds, the targets we had proposed. Overall the paper confirms that it is certainly not the intention of the Hong Kong Government to stop, or taper off, the development of the Colony once the proposals in the 1976 Planning Paper have been implemented.

4. The paper, as agreed with Mr John Stewart when he discussed the subject in Hong Kong in April, goes further than the outline agreed by the Minister by attempting to cover the economic as well as the social field. In his telegram informing us that the paper was on its way, the Governor said he would like to discuss the form the paper will take. It was originally envisaged as a brief for the Secretary of State's planned visit in the autumn. Although this it now looks likely that this visit will be postponed, does not reduce the desirability of our having a paper on the lines proposed. What is needed is a clear statement of policy objectives for the development of Hong Kong in the

1980's.

CONFIDENTIAL

15.

Share This Page