CONFIDENTIAL AND STRICTLY PERSONAL

British interests do not coincide he will favour the latter. A new Governor who manifestly sets out to implement a policy of tighter British control would be likely to encounter serious resentment and opposition. He will thrive only if he wins the confidence and loyalty of the Civil Service.

13. One straw in the wind during my visit to Hong Kong last month, Mr Allen Lee passed me a message from Dame Lydia Dunn (who was abroad) who had seen an article in a Hong Kong newspaper saying that HMG proposed to appoint a senior British diplomat as Deputy Governor. She wished me to know that the Finance Committee of LEGCO would not approve such an appointment. This both shows the sensitivity of the present issue and brings to our attention what is a fact -

any new post in the Hong Kong Government will need the

approval of LEGCO unless it is paid for by Britain.

14. The power of Hong Kong politicians and the Hong Kong Administration to handicap and circumvent new officials of whom they do not approve should not be underestimated. If the issue is badly handled resignations are a possibility.

NEW SUPPORT STAFF: POSSIBLE ALTERNATIVES

15.

16

There are three broad alternatives.

First, the new Governor could simply replace the old with no further changes. This would be the easiest solution from the point of view of reactions in Hong Kong. But I do not discuss it further because it seems clear that a politician with no working experience of Hong Kong/China or of conducting correspondence with London will need some new

support staff.

MARACE/5

CONFIDENTIAL AND STRICTLY PERSONAL

/17.

Page 60Page 61

Share This Page