TNAG-0393-FCO40-439-Diplomatic-reports-from-Sir-Murray-MacLehose--Governor-of-Ho-1974 — Page 36

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of insecurity.

There is, however, a new awareness, on both

sides, of a community of interest between Britain and Hong Kong.

It is the job of the servants of both governments to foster this

development, and they are doing so.

4. A major concern of your government is to associate the

people with the work of development within the existing

constitutional framework. The "Keep Hong Kong Clean" campaign

is a successful early example of this approach, for which credit

is due to all concerned. Your government's social programme

will also both generate and require increasing public support

and involvement.

5. To achieve this development, however, you have three main

requirements; a healthy economy, an efficient government machine,

and a framework of law and order. The economy of Hong Kong has

always been based on confidence and hard work. The recent

activity in the Hong Kong stock exchanges and the associated

sharp rises in land prices and rents have, however, disturbed

the pattern of orderly economic development. You are well aware

of the risks both of overconfidence and of recession. Your

government has taken and is taking action to control the

situation, but great care will continue to be needed as well

as a willingness to act in time to forestall unhealthy developments.

6.

You are also tackling, with the help of your consultants,

the reorganisation of the government machine to meet the needs

of Hong Kong today. The present system was designed for a less

/developed

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