TNAG-0482-FCO40-547-Diplomatic-reports-from-Sir-Murray-MacLehose--Governor-of-Ho-1974 — Page 85

Mr Youde

Mr Wilford

Sir D Watson

PS/Mr Blaker

CONFIDENTIAL

NICKIS

Flag A

ANNUAL REVIEW FOR 1973: HONG KONG

1.

Sir Murray MacLehose's second annual report from Hong Kong

is, as he admits, much more muted than his first. Last year we

sent him a despatch congratulating him on a successful year of

progress.

2.

This year he agrees that much has gone wrong.

This has produced a despatch that is somewhat defensive

in tone and which omits some controversial developments altogether.

There is no reference to the Mass Transit contract decision,

except in the Calendar of Events. This is odd, even in the context

of the internal situation in Hong Kong - still more so in the

context of Hong Kong's overall relations with Britain.

3.

Nevertheless the despatch is a useful reminder of the

It relates the

day to day work of the Hong Kong Government.

problems with which we have to deal in London, to the more immediate

concerns of Hong Kong. These continue to be the growth of the

economy, the protection of Hong Kong's trade, relations with China,

the machinery of Government and the social and security interests

of the ordinary people of the colony.

The Economy and Trade

4.

The most important fact in the despatch is that, despite

all the recent troubles, the Gross Domestic Product of Hong Kong

has increased by 71% and exports by 6% in volume and 24% in value.

/This buoyant

CONFIDENTIAL