3.
HONG KONG:
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LONG TERM STUDY
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(Previous Reference:
C165/5(67) 3rd Meeting Minutes)
Sections
The Working Party had before then a note by the Commonwealth Office (OPDO(DR)(67) 52) to which was attached a first draft of certain sections of a report on policy in respect of Hong Kong in the long term. of the report on China's intentions towards Hong Kong and on the involvement of the United States were handed round at the meeting.
The Working Party discussed each of the sections in turn and noted that the first draft of Section F (What are the prospects of a negotiated solution?) would be circulated to Departments by the end of the week.
A.
The following points were made in discussion
Background
(a) One of the major problems of Hong Kong was the age distribution of the
The population, some 60 per cent of whom were below the age of eighteen. presence of very large numbers of young Chinese in such a concentrated urban area as Hong Kong gave rise to many problems, more especially as the peculiar circumstances of the Colony meant that there could be no outlet for their energies in normal political activities.
(b) Reference should be made to public pressure in the United Kingdom for the introduction of Western concepts of labour legislation, particularly on hours of work. There was however no organised worker demand in the Colony for shorter hours of work. The subject was related to the problems of age distribution and political outlets referred to above.
(c) Paragraphs 3-5 on the economy of Hong Kong under-estimated the resources of the Colony in the skills of its population and in its geographical situation and did not bring out the fact that Hong Kong was a thriving community with an increasing standard of living which could withstand a down-turn in world
trade better than many other countries.
(a) There was some evidence that recent events had led to a fall in re-investment of profits in Hong Kong and to some transfer of funds out of the Colony. If this continued it could have an effect on the Colony's substantial sterling balances. On the other hand, sentiment could change quickly and although the Colony's recent rapid rate of growth was unlikely to continue, there was no prospect at present of an economic decline and many opportunities for successful investment were to be found.
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