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HKKD26/6

Information only / Action on Para(s)

MR G E CLARK

As the haren N Thompson &

52,

Some interesting comments on commption (through the soures are not exactly, unbiased)

Wo. Chewill

VISIT TO HONG KONG (4-7 MAY)

1. I had discussions with the Political Adviser, member of JSIS and

Special Branch and officers concerned with China in the American

Consulate General.

2. On Hong Kong affairs, the Special Branch officers and other officials with whom I had discussions were reasonably optimistic on the prospects for keeping corruption under control. Corruption had already been very

substantially reduced in the Police, but less so in the Public Works

Department. Nearly half the officers of the Police Force had been appointed since 1974 and were less likely than those who had joined earlier to have become involved with the syndicates. Although corruption probably could not be substantially further reduced, it was unlikely to evoke any serious public

reaction. The Chinese Government continued to show no inclination to exploit the issue because of their primary concern with safeguarding the economic benefits they derive from Hong Kong..

3. One point worth metioning from my conversation with members of the US Consulate General concerned China and the Vietnam-Cambodia conflict. They suggested that the Vietnamese, probably during Phan Hien's visit to Peking early this year, had asked the Chinese to use their influence with the Cambodians in the interest of reducing tensions on the border. felt by the Vietnamese over Chinese failure to influence the Cambodians in this way may well have added to their resentment over Peking's attitude to the conflict.

Dissatisfaction

30 May 1978

K C WALKER

cc Mr Rhodes

Mr Samuel, FED, FCO

Mr Bone, RD, FCO

Lt Col Bennett, DI4, MOD Mr Quantrill, HKGD, FCO

r Simons, SMAD, 700.

HKR 380/2

RECEIVED IN REGISTRY NO. 51 0 5 JUN 1978

DESK OFFICER INDEX

PA

No R$ 34

JMONET JA GYM A

REGISTRY

Action Teen

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