TNAG-0461-FCO40-526-Exchange-of-newsletters-between-Foreign-and-Commonwealth-Off-1974 — Page 36

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CONFIDENTIAL

But I have no intention of galloping it all round the track again. It has been exercised enough not only by me but by others (not all of them prompted by me by any means). Lately it has gathered further support including, among others, Hong Kong Civil Servants seconded and permanent.

9. I was, however, sorry to see from your pre-Xmas letter that this has become a matter of controversy. It really ought not to be, since what I am arguing for is not in any sense controversial. I fully accept your point about the value of the direct access to Government (although it would carry even more weight if one could see this producing more, favourable, results on specific issues) and also that the need to explain the British point of view would be less if the outstanding points of difference could be reduced. And I am not seeking to erode, or substitute for, that. Discussing with exerting direct influence on - Government is not, or should not be, incompatible with ensuring that your point of view is publicly known unless the purpose is to use public opinion to convert Government (and that is not the case here). The two activities are surely not mutually exclusive; they should be complementary.

10. Certainly that is how I have thought of it - as our putting across the British background not to prove the Hong Kong Government wrong (certainly not to have a "debate" with them that word has been too often imported into the discussion) but to show another side of a mutual problem which they cannot, and do not, find it politic to represent, but would like to see exposed.

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11. Two topical illustrations of my point. First the statement on the agreement on the extension of the Sterling guarantee. That was represented in the press as a triumph by the Financial Secretary (putting the Treasury in its place) and astuteness on the part of the Hong Kong Banks. There was hardly a hint of recognition of the Treasury having been as understanding and helpful as circumstances allowed or that a substantial measure of diversification has been allowed to happen; and no one tried to corect the balance. As I have frequently said, if there is one issue on which we need to show clean hands if we want to retain commercial confidence it is the Reserves and we have contrived to look, or be made to look, furtive and uncooperative from start to finish. Second, our present economic problems.

It is this office not GIS who are putting out the stories aimed at restoring perspective. GIS just do not do this sort of thing.

In my 19 months here I have seen them issue only local news publicity for the various campaigns, texts of speeches in Legco etc; they sometimes act as distribution agents for our material but only on our initiative.

/ 12.

So to

CONFIDENTIAL

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Every effort is made to ensure that the information given herein is accurate, but no legal responsibility is accepted for any errors or omissions in that information and no responsibility is accepted in regard to the standing of any firms, companies or individuals mentioned.