TNAG-0393-FCO40-439-Diplomatic-reports-from-Sir-Murray-MacLehose--Governor-of-Ho-1974 — Page 12

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CONFIDENTIAL

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In his despatch Sir Murray MacLehose deals with an important

question, which is relevant to all our discussions on the future

of the Colony and which has never, I think, been disposed of

completely satisfactorily. He asks who benefits from Hong Kong;

but the underlying question is, what use is Hong Kong to the UK?

2. His first proposition is that the Chinese inhabitants benefit.

This is true and is relevant, since the welfare of the inhabitants

is a legitimate colonial aim. The next is that China benefits.

Again this is true, at least on the foreign exchange point; but

in his letter to Mr Youde of 7 November, Sir J Addis doubts the

value to China of Hong Kong as a window on the world. These points

are important in the assessment of Chinese intentions towards the

colony. They are therefore relevant to the question whether we

can stay in Hong Kong; but less so to the question whether we

should want to do so.

3. More novel, and more relevant to our underlying interest is

the suggestion that Hong Kong is on balance a plus-factor in the

UK's relations with the Chinese Government. I am not the expert

on this (nor for that matter is the Governor); but Sir John Addis

discounts this argument and says that Hong Kong has been a constant

embarrassment in Sino-British relations for at least the last half

There must be some truth in this, remembering the burning

century.

CONFIDENTIAL

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