TNAG-0380-FCO40-426-Sterling-assets-and-balance-of-payments-of-Hong-Kong-1973 — Page 76

HE MUST ASSUME WOULD BE CONCLUDED ONE WAY OR THE OTHER BY 24

SEPTEMBER.

3. CIVIC ASSOCIATION OF HONG KONG HAS ISSUED STATEMENT EXPRESSING

'GENUINELY HELD FEAR ON PART OF HONG KONG PEOPLE THAT HONG KONG'S

SURPLUS IS REMITTED TO LONDON TO BOLSTER BRITISH ECONOMY AT

EXPENSE OF LOCAL SOCIAL AND ECONOMIC DEVELOPMENT IT SAYS BRITISH

GOVERNMENT DELAYING TACTICS HAS DONE LITTLE TO ALLAY THIS FEAR

AND ASKS WHETHER BRITISH GOVERNMENT IS TAKING ADVANTAGE OF HONGKONG

BECAUSE IT IS A CROWN COLONY. ASSOCIATION PROPOSES THAT HONG KONG

SHOULD BE ALLOWED TO DIVERSIFY A FURTHER 40 PERCENT, SHOULD BE

GIVEN A BETTER GUARANTEE AGAINST LOSS IN TERMS OF HONG KONG DOLLARS

AND THERE MUST BE BETTER AND CLOSER COMMUNICATION AND UNDERSTANDING IN FUTURE HANDLING OF RESERVES. IT CONCLUDES 'UNLESS THESE CONDI-

TIONS ARE HET, RESPONSIBLE COMMUNITY GROUPS IN HONG KONG WILL HAVE

NOT OTHER ALTERNATIVE BUT TO CONCLUDE THAT BRITISH GOVERNMENT IS

ARBITRARILY TAKING ADVANTAGE OF AND IMPOSING ITS WILL UNFAIRLY

UPON HONG KONG PEOPLE.

4.

CHINESE NEWSPAPER (SING TAO - SECOND LARGEST) WHICH WAS ODD

MAN OUT IN MY PREVIOUS TELEGRAM TODAY HAS EDITORIAL SAYING THAT

NEW GUARANTEE WHICH WAS IMPOSED WITHOUT A FAIR CHANCE TO DISCUSS'

HAS LITTLE TO OFFER AND ACCEPTANCE MIGHT MEAN SURRENDER OF CONTROL

OVER RESERVES. THE QUEEN HAS ALLOVED HONG KONG TO BE AUTONOMOUS

AND THIS SHOULD INCLUDE POLITICS, LEGISLATION AND FINANCE. SINCE

THE BASLE AGREEMENT WAS MADE ON A BILATERAL BASIS HONG KONG

HAS RIGHT TO WITHDRAW DEPOSITS WHEN AGREEMENT EXPIRES: THEY CAM

BE BETTER USED IN HONG KONG E,G. FOR FREE SCHOOLING. 'A PUBLIC-

SPIRITED GOVERNMENT WILL GET MORE SUPPORT FROM THE PEOPLE THAN À

PROFITEERING GOVERNMENT'.

1.

5. PRIVATE COMMENT TO HE BY BANKERS, CIVIC LEADERS AND COMMER· CIAL CONTACTS, REINFORCES COR ECHOES) THIS LINE OF PRESS COMMENT. BRITAIN IS INCREASINGLY REPRESENTED AS SICK ECONOMY SUCKING

TUROUGH RESERVES AND PROFITS ON

ENTRENGTH FROM HONG KONG