FOREIGN AND COMMONWEALTH OFFICE
HKK 13/2
CONFIDENTIAL
DIPLOMATIC REPORT No. 38/74
FCO/Whi (Secret) Distribution
HONG KONG: ANNUAL REVIEW FOR 1973
The Governor of Hong Kong to the
Secretary of State for Foreign and Commonwealth Affairs
SUMMARY
A difficult but tolerably successful year. (Paragraph 1.)
HONG KONG 4 January, 1974
2. In spite of imported inflation and other difficulties the growth in the GDP in real terms should be about 74 per cent. 1974 prospects obscured by the oil crisis. (Paragraphs 2–3.)
3. Steps taken to lessen discrimination against Hong Kong's exports. (Paragraphs 6-7.)
4. The proportion of the Colony's reserves held in sterling reduced. (Paragraphs 8-9.)
5. The stock exchange crisis. (Paragraph 10.)
6. Relations with China are pragmatic and relaxed, though she is expected to continue to press for an Official Representative. (Para- graphs 12-13.)
7. The formulation of long-term social programmes continues satisfactorily, and is politically popular. (Paragraphs 14-16.)
8. A major effort was made to combat crime in which the Government, police, and public were all involved. It was only a partial success and reduction of crime and improvement of the police force remain major fields of concern. (Paragraphs 17–21.)
9. The escape of Superintendent Godber, and the subsequent appointment of an independent Commissioner for Anti-Corruption. The extreme difficulty of his task. (Paragraphs 22–24.)
10. The reform of the Urban Council has worked well so far. (Paragraph 25.)
11. The central machinery of Government has been reorganised. (Paragraph 26.)
12. The need to make this Government acceptable to the people, and the various methods used or introduced to help them to identify themselves with their Government and to participate in some small way, even though they cannot elect it. (Paragraphs 27-32.) 13. The need for a confidential reconsideration of the Colony's Constitution. (Paragraph 33.)
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