TNAG-0281-FCO40-317-Visit-of-the-Chancellor-of-the-Duchy-of-Lancaster-to-Hong-Ko-1970 — Page 166

CONFIDENTIAL

Resentment at What is regar- ded as inter- ference by Britain in

local affairs

Clash of

Interests in the field of International

relationship which should subsist between a Colony and

the responsible power.

8.

At the same time, the Colony's remarkable record of

economic expansion and material progress in the last decade,

achieved with the minimum of outside aid, has induced a

feeling of confidence among those who play a prominent

part in public affairs that, but for the complication of

China, Hong Kong would be capable of standing on its own

feet and, more than any territory which has been granted

constitutional advance, of sustaining self-governing status.

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. There is a strong attitude

in the Colony that Hong Kong knows best what is good for

it and particularly for its rather unique economy.

9. There has been a clear emergence of a alash of interests

in the field of international textile policy between

Textile Policy Hong Kong as a major exporter of textiles and the UK as a

major importer and domestic producer: this has led Hong Kong

to press for the maximum possible freedom in the conduct

of the Colony's commercial relations and proposals

providing for a delegation of authority are now under

consideration. To the extent that Hong Kong "trades up"

(i.e. produces goods of higher quality and value) so the Colony will more and more become a competitor of the United Kingdom both in the UK domestic market and also in overseas markets, particularly in textiles.

CONTI DENTI AL