TNAG-0445-FCO40-510-Discussions-with-Sir-Murray-MacLehose--Governor-of-Hong-Kong-1974 — Page 56

CONFIDENTIAL Covering Secret

HONG KONG

ANNOTATED AGENDA FOR LORD GORONWY-ROBERTS'S MEETING WITH THE GOVERNOR OF HONG KONG ON 18 AND 20 JUNE 1974

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1. The Future and current situation of Hong Kong

The Governor has submitted a political despatch on the current situation and prospects. A major factor in our administration is the four million Chinese who have

chosen to live in the Colony. Other considerations are more finely balanced. The Chinese Government show no disposition to demand changes in the status quo. If discussions on the future were begun the fact that they were being held would effect confidence. This would precipitate economic and administrative problems that could make the Colony difficult to govern. Lord Goronwy- Roberts has said that he agrees with this analysis of the

situation. This is not the time for new moves.

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Possible Constitutional Developments

The Governor has submitted proposals in his Despatch of 30 May. His proposals form the basis for discussion.

3.

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Social questions

The Governor's despatch of 28 May forms the basis for discussion. Inflation is a major problem. Lord Goronwy- Roberts has said that he would want the Governor's frank

views on the level of popular discontent about the rising cost of living. He would also wish to discuss taxation. policy and the need to raise revenue for social purposes.

CONFIDENTIAL Covering Secret

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