TNAG-0188-FCO40-224-Periodical-reports-on-colonial-affairs-1969 — Page 29

NOTHING TO BE WRITTEN IN THIS MARGIN

CONFIDENTIAL

[Omit?]

and for explanation of important Government

policies and decisions.

4. It is indeed remarkable that in spite of the

Communist pressures to which the Colony has been

subjected its economic advance should continue at

so high a rate. Two years after the onset of

confrontation in 1967 the Colony is stronger than

ever. But as you recognise in paragraph 5 of

your Despatch, the present conditions of

relatively free international trade, on the

maintenance of which the health of your commerce

It

and industry and therefore of your public

finances depend, may suffer some erosion.

would be surprising if the spectacular growth of

your export trade did not generate pressures for

its restraint from some of your trading partners.

It is my earnest hope that such pressures can be

contained and that Hong Kong will notwithstanding

continue to benefit from the expansion of world

trade. In this connection I went also to say

that I attach great importance to continued, and

close, consultation and association between your

Government and H.M.G. in the United Kingdom in

the matter of international trade. There are

already some fieNs, such as the handling of

cotton textile negotiations where you have full

authority. In other fields it is certainly not

my intention that the special interests of

Hong Kong should be unnecessarily subordinated to

those of H.M.G. Nevertheless there are certain

important matters in which we have a common

interest and I believe that we must continue to

recognise this and to work as closely in harmony

as possible.

/5.

No

CONFIDENTIAL