CONFIDENTIAL
9.
financial autonomy for the Council, a clearer definition and minor enlargement of its functions, and the removal of officials from the Council membership. These changes fall short of what the Council itself has proposed, and I have no doubt that the elected members themselves, and various other vocal but minority groups, will express the liveliest disappointment at the proposals.
On the other hand, there is likely to be quiet satisfaction in other quarters that the Council's ambitions will be kept in reasonable check.
30.
To sum up, it has been a good year. The people of Hong Kong have responded to the favourable economic climate with their usual high degree of enterprise and hard work, and most are enjoying a well-earned improvement in living standards. With all this inevitably comes increased expectations and a growing, but not as yet very widespread, concern for the less privileged who for one reason or another cannot share in this prosperity. For its part, the Government is pressing on with a wide range of programmes in the social service area, as well as in the more concrete field of improvements in the general environment. We are aiming at a steady improvement in the Government's performance at the level at which it has direct impact upon ordinary people, and as close a correlation between public policy and public opinion as sound administration permits. I am satisfied that a great deal has been achieved in these directions during the past year. Indeed, while 1967 was a year in which many plans had to be delayed and 1968 was a year in which these plans had to be dusted off and momentum regained, 1969 has seen many of them brought to fruition or far along the road towards it. I believe that our efforts to improve the quality of life in the Colony for people of all social classes are generally and quietly appreciated, and that we can look forward to a continuation of the satisfactory relationship between the Government and the people that has brought us through so many difficult periods in the past.
31.
Nevertheless Hong Kong socially, politically and economically is pre-eminently a community that depends on confidence. On all three points we are vulnerable and it is essential that, with the backing of Her Majesty's Government in the United Kingdom, the Government of Hong Kong should continue, albeit with the minimum of provocation, to be firm in resisting any encroachment on the interests of the people. A loss of confidence could only too easily be generated by the successful exploitation of social and administrative problems by the Communists, or an erosion of our export markets by overseas interests.
I have the honour to be,
Sir,
Your most obedient, humble servant,
Brunch.
GOVERNOR
CONFIDENTIAL
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