TNAG-0458-FCO40-523-Future-of-financial-and-economic-policy-of-Hong-Kong-1975 — Page 14

SECRET & PERSONAL

香港總督府

My de з

W

6/12

Pastik

GOVERNMENT HOUSE

HONG KONG

2nd December 1974

I should like if have a word

withi

уа

& Mr Holland about this.

Di Walin

I must apologise for not replying long

ago to your helpful and thoughtful letter of 3rd October largely about the management of our finances.

2.

We are indeed moving into a most uncomfortable and rather daunting conjunctube in which the Hong Kong Government may expect to be squeezed between various financial, social and political imperatives. The strength of these various and conflicting forces has gradually become more apparent since I last saw you, and I look forward to discussing them with you and others in London in mid-December.

3.

Before deciding how to proceed I must

have a clearer idea :-

a)

RECEIVED IN REGISTRY No. 51 23 DEC 1974

HKK 5/43.

4.

b)

of financial forecasts for '75/76 and

'76/77 in the light of Hong Kong's experience of the impact of the world- wide recession in recent months, and the prudent assumption that it will continue for at least next year. These are in final stages of preparation and will be available by the time I come to London:

of the strength and significance for Hong Kong of the balance of parliamentary interest, and what Ministers consider its implications to be. This I hope to gain some knowledge of in London and during Lord Goronwy Roberts' visit in January.

Without (a) I cannot say what is possible here, and without (b) I cannot suggest how the require- ments of (a) might be presented, or with what they might be coupled, so as to cause the mimimum of trouble to Ministers.

5.

I am of course acutely conscious of the

danger of this Government's handling of either (a) or (b)

Sir Duncan Watson, KCMG,

Foreign & Commonwealth. Office,

London, S.W.1.

PERSONAL & CONFIDENTIAL