in Hong Kong an enlightened policy of rapidly improving social and other services has become a political necessity and, while the Colony obviously cannot ignore measures which would significantly improve the economic infrastructure, the pressures to give priority to measures of social betterment have increased and will continue to
increase A parochial view of such matters is not uncommon in Hong Kong and on the question of the airport views have already been freely and publicly expressed that the principal beneficiary of the improvements would be the U.K. rather than Hong Kong.
30. There is the added factor of our wider political interest in maintaining confidence in Hong Kong. Unless publicly and candidly explained in sympathetic terms, a refusal to assist in a project so closely concerning U.K. interests must be interpreted locally in a way that could affect public confidence in Hong Kong. It is understandable in the circumstances of Hong Kong that people should anxiously watch for any sign that we might be preparing to pull out and conversely should greatly value indications that we are deeply involved in the territory and its problems. For some years now there has been a growing feeling in Hong Kong that Britain regards the Colony as a nuisance and an impediment. We left Hong Kong to
grapple alone in the post-war years with the tremendous problems posed by the influx of refugees from China. At the same time we are
seen as having dealt the Colony a series of blows to its trade and finances: the restrictions on its exports of cotton textiles to this country since 1959, the import surcharge (1964), the "carry-over" controversy (1965), the increase in the defence contribution (1966), devaluation (1967), the import deposit scheme (1968). Our actions are seen as showing a lack of concern for Hong Kong's interests and
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