TNAG-0461-FCO40-526-Exchange-of-newsletters-between-Foreign-and-Commonwealth-Off-1974 — Page 37

CONFIDENTIAL

Could

12. So to suggest

as DTI did to me in a recent letter

that we

over the background to the G S P "controversy" (BTC) should hold back because the object is to get the Hong Kong Government to argue our case for us, is (I fear) wishful thinking. David Jordan himself asked us to take over for explaining the UK angle precisely because he could not assume

that role. Hobby horse back into stable.

would not?

JAPANESE PRESENCE

13.

•

-

The growth of Japanese presence and influence here over the past year has been very noticeable. They have won a further number of major contracts - and the M T S in prospect. They are entering into more joint ventures they now have 65 out of 290 (they are second to US A) - and are showing as much interest as anyone in more still (including the possible petro-chemical plant on Lamma). They have more involvement in commerce from finance houses to hotels. The number of Japanese tourists up to October has rocketed to385,000 (a 25% increase over 1972 or 40% of all tourists coming to Hong Kong); the roads of the Peak seem permanently full of Japanese tourist buses full of flag led Japanese tourists. Extensive hotel development is being based largely on anticipation of continued growth of this influ and the recently approved Lantao Holiday Resort project has as a principal feature a club house and golf course conceived primarily for, and to be built by, Japanese. The Japanese School under the auspices of the Japanese Consulate General is being much extended.

14. It is not surprising, therefore, that some of the older residents, with memories of 30 years ago, comment with a certain wry disapproval that "it is becoming a Japanese colony".

CORRUPTION

K

15. (The only intended link with the previous paragraph is the changing scene). I recall remarking in one of my early letters from here that there was much more corruption including in connection with public services and contracts than was admitted. The lid has been lifted off it by Godber, but the stirring has hardly started yet. Jack Cater's appoint- ment has been one of the most welcomed Government acts of the year but there is a considerable scepticism about what he and his department can really achieve (indeed at present it seems to have more bark than ability to bite since it lacks its own enforcement force). Moreover one can still hear old hands European and Chinese - and including very senior officers who have personal reputations for integrity, express the view that it could be dangerous to stir too much to bite too hard

/since to

CONFIDENTIAL

4.

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.