XN000022-1977-12-01 — Page 3

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THURSDAY, DECEMBER 1, 1977

IN ANSWER TO ANOTHER QUESTION AS TO WHETHER THE PRESENCE OF BRITISH TROOPS IN HONG KONG WAS A FACTOR CONTRIBUTING TO STABILITY, SIR MURRAY SAID HE BELIEVED THEIR PRESENCE WAS OF IMPORTANCE, BUT HE MADE IT CLEAR THAT THE USE OF THE GARRISON WAS NOT CONTEMPLATED AT THE TIME.

EARLIER, SIR MURRAY SAID HE HAD NO FEAR FOR THE FUTURE OF ICAC AND THE IMPORTANCE OF ITS OPERATION.

SINCE ITS ESTABLISHMENT IN 1974, HE SAID, THE ICAC HAD CHANGED MUCH IN HONG KONG THAT MANY HAD REGARDED AS UNCHANGEABLE, +ITS OBJECTIVE WAS NOTHING SHORT OF A REVOLUTION IN PUBLIC ATTITUDES TO CORRUPTION.+

SIR MURRAY EXPRESSED GREAT SYMPATHY FOR THE MAJORITY OF HONEST MEN WHO MAKE UP THE POLICE FORCE WHICH, HE SAID, HAD ACHIEVED MUCH DESPITE THE UNSETTLING EFFECT ANTI-CORRUPTION MEASURES HAD HAD ON THE HONEST MEN IN THE FORCE.

+YOU CAN ALSO IMAGINE THE RESENTMENT OF THE HONEST AS EACH NEW COURT CASE RELEASED DIRECT OR INDIRECT CRITICISM ON THE FORCE AS A WHOLE, HE ADDED.

THE FORCE WAS NOW PERFORMING ITS DUTY IN AN EXEMPLARY MANNER HE SAID. +NEVERTHELESS, RECENT EVENTS HAVE REVEALED MAJOR PROBLEMS OF MORALE, DISCIPLINE AND COMMUNICATION AND MUTUAL CONFIDENCE AT ALL LEVELS, WHICH MUST NOW BE CAREFULLY AND SYMPATHETICALLY STUDIED AND CORRECTED.

+ IT WILL BE MY MAJOR CONCERN IN THE NEXT YEAR TO SEE THAT THIS IS DONE, SIR MURRAY SAID.

SIR MURRAY ALSO SAID IN REPLY TO ANOTHER QUESTION THAT THE AMNESTY HAD NOT HARMED RELATIONS WITH CHINA IN ANY WAY.

IN HIS ADDRESS, HE HAD NOTED THAT SINO-BRITISH RELATIONS REMAINED EXCELLENT. + INDEED IN THE 30 YEARS THAT I HAVE BEEN CONCERNED WITH ANGLO-CHINESE RELATIONS, I HAVE NEVER KNOWN THEM TO BE BETTER.+

THIS ALSO APPLIED TO RELATIONS WITH CHINA ABOUT HONG KONG, SIR MURRAY SAID, CITING AS EXAMPLES CHINA'S SPECIAL EFFORTS TO SUPPLY MORE WATER TO HONG KONG AND CHINA'S RECENT INVESTMENTS IN BANKS, RETAIL BUSINESS, REAL ESTATE AND SOME INDUSTRIAL DEVELOPMENT.

+ I THINK THIS PICTURE OF BUSY COMMERCIAL NORMALCY IS ONE FROM WHICH WE CAN TAKE CONFIDENCE FOR THE FUTURE,+ HE SAID.

ON HONG KONG'S TEXTILE TRADE, SIR MURRAY SAID THAT THE TERMS WHICH THE EUROPEAN ECONOMIC COMMUNITY WAS DEMANDING OF HONG KONG +ARE UNPRECEDENTEDLY HARSH AND COMPLETELY OUT OF LINE WITH PREVIOUS AGREEMENTS.+

HE SAID THE TALKS WERE OF VITAL IMPORTANCE TO HONG KONG AS THE TEXTILE AND CLOTHING INDUSTRIES EMPLOY HALF OF HONG KONG'S INDUSTRIAL WORKFORCE AND PROVIDE ABOUT HALF OF HONG KONG'S DOMESTIC EXPORTS.

SIR MURRAY SAID THERE WAS MUCH AT STAKE, AND NOT ONLY FOR HONG KONG, BUT HE EMPHASISED THAT +WHILE FAILURE TO REACH AGREEMENT COULD BE DIRE, SO TOO COULD BE THE WRONG SORT OF AGREEMENT. +