TNAG-0188-FCO40-224-Periodical-reports-on-colonial-affairs-1969 — Page 47

CONFIDENTIAL

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18.

In brief, we continue to make steady progress in the social and economic fields. With constant vigilance we can overcome any internal pressures which would tend to impede this progress and can contain any local Communist influences. We remain vulnerable, of course, to external pressures, if the C.P.G. should decide to change its policy towards Hong Kong, and our trade expansion remains vulnerable to trade restraints imposed, or currency disturbances experienced by our trading partners. But, on the whole, Hong Kong's immediate future looks reasonably bright, brighter indeed than might have been thought possible at this time two years ago; and the confidence of the community in that future is being well maintained.

I have the honour to be,

Sir,

Your most obedient, humble servant

French.

The Rt. Hon.Michael Stewart, CH, MP,

Secretary of State for Foreign and Commonwealth Affairs.

GOVERNOR

CONFIDENTIAL