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UK team in that they would not labour under the disadvantage of being suspected of deep machinations to the disadvantage of long Kong. Nor would I think that the Governor's idea of a merchant banker is necessarily a bad idea, if a man of the right expertise and calibre could be found. Moreover, there are possibilities of a mixed public/private team which might bear examination. Personally, I would think it a pity if the Bank of England's accumulated wisdom could not in some way be deployed in a constructive way to help Hong Kong: but it is evident that this wisdom is not held in high regard, and it seems to me very desirable that whoever discusses and advises should have the full confidence of the Hong Kong Government.
4.
That said, I should also say that I have some reservations about the way in which the Governor has put his second point. As I read him, what he has in mind is a merchant banker to work within the Hong Kong Government. Whilst I recognise that we have to be extremely careful about Mr Haddon-Cave's sensitivities, it does not seem to me that this is the most helpful approach. For as I sce it, it is of the essence that whoever is involved is able to stand back from the press of day-to-day business; and that he or the leader of a team should be able to discuss with Mr Haddon-Cave on terms of equality and mutual respect.
5.
In the light of these comments, how does the programme look from now on? It seems to me that the first task is to convince the Governor that there are problems which in Hong Kong's interesto need to be looked at with some care and in some depth. We had hoped that Mr Royle's original message would stimulate a more favourable response, but it did not. The general tone of the Governor's reply is understandable against the background of discussions and negotiations on financial matters over the past few years;
and indeed in the context of the many problems which are at present at issue between 1IMG and the Hong Kong Government (Sir Duncan Watson's submission of 16 August). In this atmosphere of suspicion, not to say distrust, I imagine that the Governor himself (let alone Mr Haddon-Cave) has yet to be convinced that Mr Royle's suggestion was a genuine attempt to be helpful to Hong Kong. We do not seek any financial advantage to the UK; we do not pretend that we know all the answers. Far from gunning for Mr Haddon-Cave, it is he more than anyone whom we want to help. In the way that relationships with Hong Kong go, these are difficult points to get across; and I suspect that they can only be got across in private conversation between a Minister and the Governor. I have suggested that it might be possible (though of course we should have to clear any proposed line with the Treasury and the Bank of England) to go a long way towards accepting the points which the Governor has made in his reply to Mr Royle; if so, this might help to allay any residual suspicion,
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