TNAG-0482-FCO40-547-Diplomatic-reports-from-Sir-Murray-MacLehose--Governor-of-Ho-1974 — Page 39

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CONFIDENTIAL

1JNK 13/2

Mr Crowson

We spoke.

R.K. home

6/

Mr Stuart Spoke M. Fasson

HONG KONG

|

Mr

crampan

13

There is usafed stuff

here, let us consider

asain after the meetings with the Governor Haporality of a formal reply.

He

1. I leave for the International Labour Conference tomorrow and I have only had the opportunity, therefore, to read quickly through the Governor's two despatches of 27 and 28 May. As might be expected, they are carefully prepared and argued documents which will certainly repay detailed study here. Although it may not be possible to reach a decision before the third despatch reaches us, it may well be thought that these three documents will justify equally careful and detailed reply by formal despatch. I hope it will be agreed that discussions with the Governor while he is over hêre will be no substitute for this. In any case, the serious consideration and thought that the despatches deserve could hardly be undertaken before he arrives here.

2.

The following comments are necessarily somewhat superficial since they derive from a single reading of the despatches. As one might reasonably expect, the despatches put the best possible gloss on Hong Kong's affairs; much is left unsaid and a number of important matters are touched on in terms which would leave the innocent reader with quite a wrong impression: One thing which I feel I ought to record is that during my visit in February I did not receive the impression that the wage situation was regarded with any great seriousness; quite the contrary. It is therefore gratifying that the Governor has now established a small specialist group to monitor the situation.

J

But the size of the

3. Other comments are as follows:

Despatch of 27 May 1974

The first part of the despatch (up to para. 12) is a perceptive and thoughtful analysis which calls for no comment.

a.

B.

Para.13. The housing programme in Hong Kong may perhaps be the subject of some detailed comment in the despatch still to come but there are, I think, quite serious defects in the present proposals and a marked inferiority in the Hong Kong arrangements from those in Singapore. These deficiencies may be justified and indeed inevitable but there are a number of questions that need to be asked about Hong Kong's housing policy, some of which are contained in my report. To make only two points: first, how is it that the most popular flat in Singapore is the 3-room flat, which is within the purchasing capacity of an artisan, when Hong Kong is only now getting around to building 2-room flats, and they are not for sale.

is very important

beth houses

mian Semper or Second, to what extent is the rising crime rate among young people

would either

exbstanhat

in Hong Kong attributable to the legacy of 1-room flats and fearful overcrowding, and does future planning aim to ease the situation? Mr Lightbody's speech in LegCo on 28 November 1973 is not reassuring.

/c.

CONFIDENTIAL

Cost increase. There is an chement of upgrading, since the Mark III blocks are to be phased out,

The question,

and it is a valid

is whatter the degree of upgrading in sufficient. It is

difficult to be dosmate from the U.X.