TNAG-0458-FCO40-523-Future-of-financial-and-economic-policy-of-Hong-Kong-1975 — Page 33

CONFIDENTIAL

of the Hong Kong Administration should prevail, provided that they do not conflict with international agreements to which we are a party or obligations we have entered into.

4. It is clear that Sir M MacLehose, for a variety of

reasons,

finds himself somewhat isolated in his community. То a large extent this would seem to be due to the forward policies that he is backing which will take some time to gain acceptance in the bureaucracy and hierarchy. This I think makes it the more important that (since these policies are welcome in Whitehall) the Governor should continue to have the fullest backing we can give him.

5. I do not know the personality involved but, on Mr Stuart's evidence, the time is ripe for Mr Haddon-Cave to be moved on, away and up.

23 July 1974

Copies to: Mr Wilford

Mr Stuart

P JE Male

CONFIDENTIAL