TNAG-0547-FCO40-642-Diplomatic-reports-from-Sir-Murray-MacLehose--Governor-of-Ho-1975 — Page 13

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CONFIDENTIAL

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13. The Chinese Government has continued to be noticeably helpful in various ways. In particular they have used their influence with Communist- controlled trades unions to prevent any industrial or social issues resulting from the current hard times from escalating into a confrontation with the Government. The relationship of Hong Kong officials with Chinese officials stationed in Hong Kong is relaxed and effective.

14. Nevertheless the prevailing atmosphere of near-depression, adjustment, anxiety and frustration, is not a pleasant one for a Government of this sort. It is a situation in which at best the population and Press are querulous and nervous and inclined to look for scapegoats, and at the worst there is much dry material lying about to which a spark might be set by bad luck or clumsy administration. It is a year in which we must certainly be very careful.

15. I end this despatch by a plea to bear this in mind in dealing with Hong Kong this year. Whether the issue is trade negotiations with the EEC or the US, or the negotiation of a new Defence Costs Agreement, or any other matter in which Her Majesty's Government plays a distinct and dominant role in Hong Kong's affairs, Hong Kong will tend to be immensely preoccupied with its own problems and impatient and shrill about those of others. Much the most difficult and potentially explosive of these issues will be the Defence Costs Agreement.

I am sending a copy of this despatch to Her Majesty's Ambassador, Peking.

I have, etc.,

MURRAY MACLEHOSE,

Governor.

Enclosure

Calendar of events in 1974

January

12-18

12-19

20-23

Visit of Lord Fulton of Falmer and Lady Fulton. Visit of Sir John Tilney, M P, and Lady Tilney. Visit of the President of Nauru.

24-25 30

Visit of Admiral of the Fleet Lord Mountbatten of Burma.

Official Languages Bill passed making Chinese equal with English for legal

purposes.

February

4

4-24

15

22

265

2288

27

First Inspector of Prisons appointed.

Second Hong Kong Arts Festival.

Letter of Intent signed to negotiate Mass Transit Underground Railway with

Japanese Consortium.

Enactment of Independent Commission Against Corruption Ordinance setting

up the Commission.

Enactment of Securities Ordinance to establish a Securities Commission and Federation of Stock Exchanges, to make provisions in relation to stock exchanges and dealers in securities and to provide for the protection of investors.

Enactment of Official Languages Ordinance to declare English and Chinese as

the Official Languages of Hong Kong.

UK accedes to the GATT arrangement regarding international trade in textiles

on Hong Kong's behalf.

Budget Speech, introducing higher taxes on tobacco, alcohol and motoring.

Tsing Yi bridge opened.

CONFIDENTIAL