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external and domestic critics have to say

however twisted or

distorted or self-interested some of it may be.

The only answer

is to eliminate the defects as we are determined to do. Nor is

it at all safe for a community of such financial and commercial prominence to lay itself open to such criticism for one moment longer than is inescapable. Meanwhile so long as we know we are doing our utmost to eliminate the defects we can accept the

criticism with composure.

But the questions have been asked, in recent months, can

our economy afford these things, and even if it can will we not be forced into more, that we cannot afford, through external

political pressures.

Taking the point of external political pressure first;

I can assure you that so far as IMG is concerned there is complete support for and agreement with the plans I have referred to tonight and outlined to the Legislative Council last October. These are

Hong Kong's plans drawn up by the Hong Kong Government to meet Hong Kong's own needs. But HMG have a deep interest in them, both because of their concern for the welfare of the people of Hong Kong, and because ministers have a constitutional obligation to take

responsibility for them and to defend then against critics in the

UK both inside and outside the Palace of Westminster.

Hong Kong has every reason to be grateful for the staunch support that they have given, and this support has been facilitated by mutual agreement on the broad lines of Government action here

· subject of course to the advice of the Executive Council and the

approval of funds by the Legislative Council.

/There is