TNAG-0377-FCO40-423-Defence-and-Oversea-Policy-Committee-review-of-UK-relations--1973 — Page 81

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Para(s)

PRIME MINISTER

PM/73/70

CONFIDENTIAL

Mr. Ameny

Mr. Royle

PU.S

Lady Tweedsmuir

Mi wright/

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EIDCI

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Mr. White hoad/MTD

ماناگر

Sur D. Watson / Mr. Wilfad

Mr. Pensons / UND

Hong Kong

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I have recently had discussions with the Governor of

Hong Kong and I write to give you an account of the situation

there and of certain implications for our interests. On the

whole the Colony is doing well. The crucial relations with

China are on an even keel. Inside the Colony the economy

is sound and still expanding very fast. The Governor has

made a good start in developing Hong Kong into a place

where the ordinary people wish to live and work.

2.

I am, however, concerned about the state of Hong Kong's

relations with Britain, and the implications of these relations

for our interests. The problems need not be overstressed.

Official relations are good and the people in Hong Kong still

look to Britain. But there are areas of strain, arising

from the fact that Hong Kong is a modern industrial society

in its own right, but without any hope of constitutional advance.

3. The discussions with the Governor have highlighted the

difficulties which face him at present, bearing in mind that

public and press opinion in Hong Kong and in particular some.

CONFIDENTIAL

/of his