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CONFIDENTIAL
London, is to ensure that the true facts about Hong Kong are known in the UK. What is important is that the leaders in both
countries should know and trust each other and should be able to
work together, particularly in the present difficult world
economic climate.
3.
Underlying the present problems of Hong Kong is the question of the Colony's long term future. It will not be easy for the Minister to probe Hong Kong views on this without giving rise to speculation that HMG is contemplating a change of policy. Hong Kong newspapers have already suggested that our new approach to the financing of the Hong Kong garrison heralds such a change. Questions on the Chinese representative will also have this possibility in mind. However, the Hong Kong Chinese do not need encouragement to air their own views and the Minister will be given plenty of unsolicited advice on the nature of Hong Kong and of the proper relationship between IING and its Colony.
4.
The Minister's special purpose is to investigate social conditions, including labour affairs, in Hong Kong. The subject briefs provide the background. The main problem is not the lack of will in Hong Kong, but the financial and budgetary difficulty of completing the Governor's social programme in the planned time-scale. The Secretary of State has minuted to Lord Goronwy- Roberts that he is satisfied with the Governor's programme but less so with 'Hong Kong's taxation policy (including their attitude to the defence contribution).
5.
The latter is a very sensitive subject which arouses strong passions in Hong Kong, particularly among the members of UMELCO (especially Sir Y K Kan). The Minister may wish to stress the fact that nothing has yet been decided but that Hong Kong must expect and accept a substantially increased contribution.
6.
The other question on which the Minister is likely to be most strongly pressed is the death penalty. Again there is little to be said. Executive Council (though not necessarily the
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