IN CONFIDENCE

SECTION 5: TOPICAL ISSUES (EXTERNAL)

ANGLO-HONG KONG RELATIONS

5.1 While in practice Hong Kong enjoys a considerable degree of autonomy in the management of its own affairs, particularly in the commercial, financial and economic sectors, its constitutional and, to some extent its political, dependence on Britain is accepted. It is appreciated that without the British connection and its accept- ability to China, llong Kong in its present form would cease to exist. There is a continuing dialogue between HMC and the Hong Kong Govern- ment about how the two governments should best discharge their responsibilities for the welfare of the population of liong Kong. This dialogue leads to occasional differences of opinion. But, contrary to what some people in Hong Kong seem to believe, none of the many and far-reaching changes that have been made in Hong Kong in recent years have been imposed from london. They have all been made with the agreement, and usually on the initiative, of the long Kong Government. However it is acknowledged, even if grudgingly at times, that, where UK interests are involved, the last word must rest with HMG.

5.2 Hong Kong matters arouse a certain amount of public and parliamentary interest in the Ur.. Hong Kong is the subject of a large number of Parliamentary Questions (228 over the last two years) and Hong Kong matters are sometimes raised in foreign affairs debates. This healthy parliamentary interest is reflected to a lesser extent by the media and by the public at large. There is, in particular, critical interest in labour and social conditions in Hong Kong, which is sustained by sometimes sensationalised reports in the press on such matters as the illegal employment of children, crime, drug addiction and corruption.

5.3 The Hong Kong Government does not pretend that there is not still much to be done, particularly in the social field, and there will always be room for disagreement over priorities and the rate of progress that it is reasonable to expect. But substantial progress has been made in recent years, and the government are committed to maintaining that progress in coming years.

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