TNAG-0442-FCO40-507-Visits-of-Sir-Murray-MacLehose--Governor-of-Hong-Kong--to-UK-1974 — Page 64

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HONG KONG: MEETING HELD BY LORD GORONWY-ROBERTS AT 3 pm ON 23 MAY 1974: CONCLUSIONS

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PRESENT:-

Lord Goronwy-Roberts Sir Duncan Watson

Mr Wilford

Mr Youde

Mr A C Stuart

Mr R B Crowson

Mr AC Galsworthy

The meeting discussed policy in Hong Kong in the context of the forthcoming visit by the Governor and with reference to the attached annotated agenda.

(i) The future of Hong Kong

Lord Goronwy-Roberts said he agreed with the analysis of the problem in the annotated agenda. This was not the time for new

moves.

(ii) Possible Constitutional Developments

Lord Goronwy-Roberts said that he would wish to hear the Governor's views. He would like to explore the possibilities

of widening of the franchise for elections to the Urban Council and of some informal understanding by which elected members of the Urban Council might be nominated to Legislative Council. But a formal convention to this effect, or the introduction of a Ward system of elections, might lead to a polarisation of politics in Hong Kong and could lead to Chinese suspicion that moves towards more self-government for Hong Kong were afoot. This must be avoided.

(iii) Social Questions

Inflation was a major problem. The Minister said he would want to have the Governor's frank views on the level of popular discontent about the rising cost of living. Although Hong Kong was accustomed to budgetary surpluses, it was also possible to budget for a deficit and to borrow if necessary. He would therefore wish to talk with the Governor about taxation policy and the need to raise revenue for social purposes. It would be short-sighted to keep taxation down at the cost of social services. Hong Kong depended on overseas investment. But investment was not income and should not be treated as such. The discussions with the Governor should also cover environmental and planning problems.

(iv)

Labour Affairs

We should maintain a steady but not undue pressure from here on wages and labour matters. These were important to Parliament.

/(v) Death Penalty

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