TNAG-0393-FCO40-439-Diplomatic-reports-from-Sir-Murray-MacLehose--Governor-of-Ho-1974 — Page 58

CONFIDENTIAL

K

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. Within Hong Kong 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 and 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

CONFIDENTIAL

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