TNAG-0293-FCO40-329-Guidelines-for-the-Governor-of-Hong-Kong--Sir-Murray-MacLeho-1971 — Page 31

CONFIDENTIAL

GUIDELINES FOR THE GOVERNOR DESIGNATE OF HONG KONG: PAPER C

Im

Hong Kong & China

Attached to this paper is a minute by Mr Morgan of

13 September and another by Mr Wilford of 28 September;

together they set out admirably the points of contact

between the CFG and Hong Kong, how these are managed and

what the CPG's aim is, and, in Mr Morgan's paper, the

principal items at issue for Hong Kong in Anglo/Chinese

relations and how he suggests they should be handled.

2. In the light of discussion of these papers with

Mr Wilford and Mr Morgan and also of a meeting with the

JIC, I set out the position below as I see it.

3.

Prodects

The tenor of the advice is that while the relationship

of China with the principal Pacific powers and with the

rest of the world may be changing or about to change, there

is no reason why this should also change the hitherto

consistent policy of the Chinese towards Hong Kong.

4. There are possibilities of friction from differences

of opinion between HMG and the Chinese over issues in the

United Nations and over Taiwan, and from the possibility of

the Japanese presence in Hong Kong becoming a source of

concern and criticism to the Chinese. The experts tend to

discount these dangers.

5. It also seems unlikely that the value of Hong Kong as

a source of foreign exchange for China will be diminished

CONFIDENTIAL

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