CONFIDEN.
SECRETARY OF STATE'S VISIT TO HONG KONG
FEBRUARY 1972
Brief No 1
STEERING BRIEF
1.
The Secretary of State will have less than 48 hours in
Hong Kong and the short time available would best be spent in
reassuring the people of the Colony of HMG's continuing interest
in their welfare and of his own personal concern with their affairs
and interests. This will help to dispel any anxiety there may be
about the effect on Hong Kong of such matters as Britain's entry
into the EEC and the development of relations between China and the
USA.
2.
Relations with Hong Kong over the last decade have not been
altogether happy. The root cause is that Hong Kong, having achieved
survival by turning from a trading to a manufacturing community,
thereby became a trade competitor with the UK. This has led to a
feeling that Britain, so far from being proud of Hong Kong's
achievements, regards the Colony essentially as a competitor and a
nuisance. Our actions (such as devaluation practically without
notice, the imposition of restrictions on Hong Kong's exports of
cotton textiles to this country and the request for an increase in
the defence contribution) are seen as showing a lack of concern for
Hong Kong's interests and for her special problems; as indicating an
indifference to the special ties and relationship which should subsist
between a Colony and the responsible power. In recent weeks our
relations have hit a particularly low point as a result of HMG's
decision, taken at very short notice, to impose quotas as well as
the tariff on imports of cotton textiles. Talks on this are at
present suspended.
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