TNAG-0445-FCO40-510-Discussions-with-Sir-Murray-MacLehose--Governor-of-Hong-Kong-1974 — Page 175

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Walled City

[LORDS]

[Earl Cowley.] However, they add that the question of Hong Kong should be settled in an appro- priate way "when conditions are ripe ". The present status quo has many advan- tages for the Chinese Government. The Colony provides a convenient base from which it can reap the benefits of capi- talism while preserving the rest of China from contamination. It is unlikely that they would want to put this in jeopardy.

However, the Hong Kong Government still feels that, if it administered the Walled City of Kowloon in the full sense of the word and so appeared to exercise sovereignty over it, the dispute would once again be re-awakened. While this might not put the whole existence of Hong Kong in question, it might damage the fragile pedestal upon which the Colony and its economy are founded. Thus the Hong Kong Government finds itself caught between the devil of poverty and the deep red sea of Chinese sovereignty. The result of this state of affairs and of the policies that have flowed from it has meant that the Walled City has been left in the control of its own internal affairs, if that is not too much of a euphemism. It has been completely by- passed by the Government's programmes on housing and social services which are being rapidly improved in the rest of the Colony.

Furthermore, Hong Kong's housing and health regulations are totally ignored within the Walled City, thus leading to extortionate rents for slm housing and a high risk of disease. The massive flood of immigrants, which has put a terrible burden on the whole Colony, has worsened the already deplorable problem of the Walled City which, because of its sovereignty boundaries, cannot expand outwards but is forced to grow inwards. Since 1945 the population of Hong Kong has escalated from 600,000 to over 4 mil- lion in 1972, with more than one million coming over from mainland China since 1950. Immigration, especially illegal im- migration, continues to swell the Colony's population.

With the ending of the 1967 " troubles and the appointment of Sir Murray MacLchose in 1971 as Governor of the Colony, the long-standing policy of laissez-faire was finally sunk without trace. Ambitious targets have been set in the fields of housing and education.

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of Kowloon

In ten years it is planned to rehouse one and a half million people. The old resettlement blocks, built during the late 1950s and the early 1960s, are either being torn down or modernised to sup- plement the new housing programme for the all-embracing housing policy which was set up in 1973. Also four new towns are being developed within the New Territories. The rate at which new schools are being built has also been increased and primary education has been made both free and compulsory. Massive investment is being injected into the Colony and China is also taking an increasing part in the financial lite of Hong Kong. Furthermore, following the study by McKinsey's in 1972 Central Government has been reorganised to increase its efficiency and to enable it to take better account of the needs of the Colony. Serious attempts are heing made to stamp out violent crime and investigations have been started into cor- ruption, especially at official levels.

But all these achievements and their resultant benefits, for which the present Governor deserves full credit, are re- stricted to the areas of the Colony outside the Walled City. It is as though the city did not exist. But as the Colony is improved so the Walled City sticks out more and more like a rancid sore thumb. allowing no one to forget its existence. It seems that if the inhabitants want to benefit from Hong Kong's economic expansion they must leave the Walled City. The Hong Kong Government's policy appears to be based upon this: hope that the problems of the Walled City will be solved by attracting its population to other parts of the Colony, Like the noble Lord, Lord Kennet. I feel that this is purely wishful thinking on the part of the Hong Kong Govern- ment. The problems are far too serious and urgent for such a policy to have any real or lasting effect. I sincerely believe that it is only the sovereignty dispute that stops the Hong Kong Government from clearing this slum and rehousing its population, and is in no way the result of jack of concern for their desperate plight.

The current policy of the Chinese Gov- ernment towards Hong Kong and its direct economic involvement in the Colony might be conducive towards a solution. The prevailing climate of entente cordiale between China and Britain could not be