TNAG-0380-FCO40-426-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1973 — Page 192

OVER THEIR VIEWS, LOCAL CONFIDENCE IN THE HONG KONG ADMINISTRATION

MUST BE AFFECTED. IT MAY BE REGRETTED THAT THEY DID NOT ... FRESS

THEIR CLAIMS WITH THE PRIME MINISTER ... BUT THAT MAY BE POSSIBLE

TWO WEEKS HENCE'. 'THERE CAN BE NO QUESTION OF BRITAIN DICTATING

TO HONG KONG'. WHATEVER THE VIEWS ON GUARANTEES FOR OTHER STERLING

HOLDERS 'HONG KONG'S IS A SPECIAL CASE WHICH REQUIRES A NEGOTIATED

AGREEMENT' HONG KONG HAS NO INTENTION OF RATTING ON THE POUND

NOW OR IN THE FUTURE BUT THE RIGHT TO BE FLEXIBLE WITH OUR RESERVES

IS BASIC TO OUR HARD-WON ECONOMIC SECURITY'.

>

2

'STAR'

WHICH HAS A REPUTATION FOR SENSATIONALISM AND FLAILING

AT WINDMILLS HAS EDITORIAL UNDER HEADING BRINGING H.K. TO THE

BOIL' WHICH SAYS 'THERE COULD BE SOCIAL UNREST IF WHITEHALL OR

WESTMINSTER ATTEMPT TO HANDLE US HIGH HANDEDLY' AND WARNS VE

COULD SINK THE FLOATING POUND IN HUMILIATING BANKRUPTCY IF WE HAD

TO SELL OUR POUNDS STERLING 900 M'. IT SEES BEST SOLUTION AS

'TO STRENGTHEN NOT SINK THE CURRENCY IN WHICH WE HAVE INVESTED'

BUT WE WANT GUARANTEES OR A CHOICE, NOT MORE RISKS WE ARE NOT

GOING TO SUBSIDISE FOR ENGLISHMEN A BETTER STANDARD OF LIVING THAN

WE HAVE FOR CURSELVES NOR HELP A NATION THAT IMPOSES ON US·

INCREASING TRADE AND IMMIGRATION RESTRICTIONS'

STAR EDITORIAL THEN LISTS NUMBER OF WAYS IN WHICH WHITEHALL HAS

HELPED CREATE HONG KONG'S INTERNAL PROBLEMS' INCLUDING ALLEGATION

OF INEFFICIENCY OF ADMINISTRATION RUN BY WHITEHALL AND ITS

NOMINEES, GRAFT AMONG SENIOR BRITISH CIVIL SERVANTS, NOT EXTRADITING

GODBER AND NOT HANGING TSOI, AND HELPING TO CAUSE THE STOCK EXCHANGE

3m

/BOOM