TNAG-0458-FCO40-523-Future-of-financial-and-economic-policy-of-Hong-Kong-1975 — Page 19

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changing world economic situation and having regard to its effects on Hong Kong and the new problems of finance which the Colony is now facing, the issues which need to be looked at are those set out in the list attached to Mr Holland's minute;

and that these should constitute the effective, though not necessarily disclosed terms of reference of the visitor proposed. We should then invite the Governor to consider how the idea of such a visit might presentationally be launched vis-à-vis both Mr Haddon-Cave and the Hong Kong public generally. I am not sure that Mr Wilford's suggestion of picking out some specific issue such as the use of Hong Kong's sterling reserves is the best way or most likely to do the trick with Mr Haddon-Cave. I would have thought that more general argument for the visit, on the lines of 'X' of the penultimate page of Mr Wilford's draft, might be more persuasive. But we could ask the Governor to think

about this and let us have his views.

7.

All this may be a somewhat simplistic layman's approach. But if Mr Holland and Mr Stuart were inclined at least to try it out on the Governor I would be grateful if Mr Stuart would attempt a revised draft to the Governor combining the ideas in Mr Wilford's draft with the thoughts in this minute. If however it would be useful to have a further meeting before doing so, I should be very ready to discuss.

21 August 1974

сс

Mr Wilford o r

Mr Male

Wenn Walia

Duncan Watson

There is one point which I find worrying: it is that we are putting ourselves in much the same position as the Governor. Like the Governor, we in the FCO are worried about financial matters in Hong Kong and by the role of the F.S. and the Hong Kong Bank. But also like the Governor, we are laymen. (I do not seek to evade my responsibility for giving economic and financial advice within the FCO:

/but

2.

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