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IV.
V.
failed to come up to expectations, Sir Murray hoped that most of the reserves would be left intact. As to borrowing, he said that Hong Kong would in any case need to go to the market in 1975 for about HK$2,000 for bridging finance for the mass transit scheme. In addition, they were considering applications to the Asian Development Bank to provide loans of about HK$150 million a year for three years. This would require a guarantee from HMG and he hoped it would be forthcoming. Hong Kong no longer had inhibitions about borrowing, or about using their reserves where appropriate; but the size of the reserves was an important factor in Hong Kong's
credit-worthiness, and should cover her obligations.
11.
Lord Goronwy-Roberts said that he broadly agreed with Hong Kong's strategy.
Labour Affairs
12.
Sir Murray MacLehose hoped that Hong Kong's comments on the Labour Adviser's report had been acceptable to HMG. Lord Goronwy-Roberts said there was concern over the recent erosion of real wages in Hong Kong. He welcomed the Governor's judgment that there would be a recovery in the second half of 1974 and that they would be back at 1973 levels by mid-1975.
13.
In answer to a question from Lord Goronwy-Roberts,
Sir Murray MacLehose said that Hong Kong's trade unions had predominantly political origins and affiliations. They fell into two groups and principally existed in order to further the influence of Peking and Taipei. He expected the trade unions to exert some pressure for higher wages, but they were currently not pressing very strongly for improvements in labour conditions or hours of work.
Death Penalty
yliacked 14.
16
HKIL 14/1
Lord Goronwy-Roberts said there seemed to be an
irreconcilable conflict between public opinion in Hong Kong and the
situation in the UK. He did not think it would be possible for Ministers of either party in the UK to allow another execution in Hong Kong. He saw no prospect of returning to the Creech Jones formula, which left the decision in the Governor's hands. He recognised the problems that this would cause for the Governor and for good government in Hong Kong. He wondered whether there was
/anything which
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