(h)
Background
2.
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We are thinking of advising the Secretary of State to reply to any such representations by observing that we. are well satisfied with the present informal method of dealing with business in Hong Kong which seems to work well for both sides. If pressed he might ask whether there are any additional advantages to be gained from an official representative which would outweigh the disadvantages, not least to China's interest in the status quo. As a last resort he might add that our
position is not irreversible and that we would continue
to keep this request under consideration.
Host of the above points are self-explanatory. It is a common experience of visitors to Hong Kong to encounter much ill-informed criticism of Britain and much conversation is concerned
with the problems in our relationship rather than recognition of the critical importance of the British connection to Hong Kong. This tends to get out of proportion, particularly since virtually everyone in Hong Kong is well aware of the importance of that connection. It would be unfortunate if the Secretary of State met with a barrage of hostile questions from the press and the sort of criticisms often expressed by senior members of the administration with whom he is likely to come into contact.
We are quite sure the Governor is aware of the dangers but no discussion of the Secretary of State's forthcoming visit could avoid touching upon the dangers as we see them.
3. The proposed line we wish to recommend to the Secretary of State for his discussions in Peking about Hong Kong has been seen by If 11 Ambassador Feking who may have further views nearer the time. The present occasion gives us the first opportunity to sound out the Governor on this delicate matter.
Hong Kong & Indian Ocean Department
27 November 1975
CPAD M
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