CONFIDENTIAL
These fuels are crucial to the life and economy of the Colony.
It was not included in the Arab oil producers' list of "friendly"
states. The Prime Minister and Foreign and Commonwealth
Secretary therefore raised Hong Kong's problems with the Saudi
and Algerian oil Ministers during their visit to London on
29 November. The Saudis subsequently agreed to make special
provision for Hong Kong. We do not, however want to make much
of this, since it could lead to demands for similar efforts by
us for the other dependent territories, and eg. Singapore.
It is also very possible that the arrangement will not get
Hong Kong out of its difficulties.
47. Line to Take: Although Hong Kong cannot be isolated from
the general world difficulty over oil supplies, we have taken
steps to ensure that Hong Kong's legitimate needs are not
ignored. This is a good illustration of our practical interest
in and efforts for the welfare of the Colony.
KOWLOON WALLED CITY (Brief no. 15)
48. The Chinese claim to residual jurisdiction in the "Kowloon
Walled City" creates problems of public administration for
Hong Kong.
Conditions inside the walled city are crowded and
insanitary. The Hong Kong authorities are improving the
environment gradually, but move cautiously for fear of stirring
up resentments within the Walled City and opposition from
Peking. The subject may however be mentioned during the Prime
Minister's visit to Poking, in order to seek their agreement to
more drastic measures to clean the place up.
- 15
CONFIDENTIAL
/49.
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