CONFIDENTIAL
Possible Effects on Hong Kong of the Entry of the United Kingdom into the Common
25%€
elations between 1 and the Hong Fon, Government have been
The Colony's unique position is
Although, in economic terms, Hong
at a low ebb for some vere,
largely responsible for this. Kong is by any standards both mature and highly sophisticated thore can be no constitutional progress towards self-government in the Colony since there have been frequent and plain indications that the Chinese People's Government expects the constitutional status quo
to be maintained.
Hong Kong's remarkable record of economic expansion and material progress in the last decade has engendered a strong feeling in the Colony that Hong Kong knows best what is good for it and in particular for its rather unique economy. The unofficial members of Legislative Council, supported by public opinion as expressed in the non-communist press, are therefore inclined to argue that Britain should not interfere in local affairs. However, the constitutional position being what it is and must remain, HMG cannot abrogate their responsibilities to Parliament for the administration of the Colony.
Future relations between HMG and the Hong Kong Government will depend almost entirely on the extent to which the Hong Kong economy
If suffers as a result of our joining the enlarged Community. our entry into the enlarged Community so affected the economy of Hong Kong (through loss of markets overseas) that a serioue uncployment problem developed a difficult int rnal security situation could arise. 3one 50% of Hong Kong's population of four million ere under twenty-one years of age and it is essential that the economy should continu: to expand at a sufficiently rapid rute to provide cmployment for this rising generation.
Hong Kong Department,
Foreign and Commonwealth Office.
10 July, 1970
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