TNAG-0104-FCO40-140-Discussions-with-Governor-during-his-visits-to-UK-1969 — Page 25

Speaking Notes

4.

Conduct of Commercial Relations

I can see that on occasions there must be some conflict

between Hong Kong and UK interests in the field of international

commercial policy, particularly in connection with international

trade in textiles. The discussions that have taken place here

will, I hope, ensure the fullest exchange of views and arguments on

such issues, leading wherever possible to the resolution of any

conflict of interests.

Very occasionally it may be necessary for me or my colleagues

to consider whether you should be asked to follow a course you

consider to be against Hong Kong's best interests. I can give you

an assurance that in such cases we shall very carefully consider the

arguments and considerations you have advanced and weigh the merits

of the countervailing arguments put forward.

5.

Air Cover for Hong Kong after 1971

I appreciate your concern that our air presence in Hong Kong

after 1971 should be sufficient to deter intrusions into Hong Kong's

air space, by China or (what is equally important) by interests

hostile to China. The decision not to station aircraft in Hong

Kong would obviously have to be reviewed if the danger of intrusion

proved to be a real one.

6. Defence Contribution

I understand that this is very delicate ground in Hong Kong

and that many of your unofficial advisers, supported strongly by

public opinion, feel that HMG should not ask for a higher

contribution in view of the pressure on the Colony's resources

/ of the