TNAG-0104-FCO40-140-Discussions-with-Governor-during-his-visits-to-UK-1969 — Page 26

This is for from

of the developing social services and other needs. But I would

hope that our own difficult economic situation, together with the

memory of the events of 1967, might lead to a better understanding

of what is after all an obligation of some long-standing by which a

Colony contributes to its own defence.

I have been told about the political difficulties you face on

this issue and fully see that you may need to deploy arguments

locally that may be quite different from those that we shall need to

use to obtain inter-departmental agreement on a revised level of

contribution. Clearly you must take account of the political

realities of the situation in Hong Kong, but we shall need every

penny we can get.

7. Visit by Secretary of State to Hong Kong

I may be visiting Japan for Expo 70 and for talks.

certain all think a short stay in Hong Kong would be useful? it is y team to so to Jubiam furthe annual

talks.

W

Would you

Clearly we should

need to give further thought to this nearer the time.

Background

8.

Conduct of Commercial Relations:

In practice Hong Kong conducts its own commercial relations

over a wide field where its own interests are primarily concerned.

Where issues of international commercial policy are concerned

involving British interests, Hong Kong has exercised a similar

responsibility in full consultation and (as appropriate) association

with us. Recently some conflicts of interest have occurred,

particularly in the field of textiles where Hong Kong's interests

as a major exporter differ from ours as a major importer.

Governor is concerned to ensure that if any such conflict can only be

The

/resolved