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services negotiations (see paragraph 3 above) has long been resented. There is likely to
be increasing pressure for Hong Kong to be allowed greater freedom of action.
22. Despite the efforts of the Hong Kong Government, through the Office of its Commissioner in London there is comparatively little knowledge or understanding of Hong Kong in this country. The impact of competition from Hong Kong upon employment in the British industries concerned particularly the textile industry, has aroused strong feelings. In Hong Kong the bulk of the population realise that the link with the UK is the sole basis for the Colony's continued existence as a separate entity, But the implications of the colonial relationship are not always understood. There is resentment among the Chinese and expatriate establishments at the way in which, as they see it, the British Government has forced the local administration to adopt policies which they do not consider appropriate to Hong Kong. And there is a widespread feeling that the UK has not been sufficiently robust in defending Hong Kong's trading and other interests internationally. Relations with Hong Kong will therefore continue to require close attention and careful handling.
HONG KONG AND GENERAL DEPARTMENT
April 1979
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D