CONFIDENTIAL
3.
scaring off the investment on which all else depends.
Lee Kuan Yew once put the dilemma to me by saying "I am a
socialist, but I must have millionaires. The same could
be said of most developing countries.
5.
It is disappointing and frustrating that
this economic conjuncture should have occurred at this moment
in Hong Kong's history. Many things appeared to be going
right or getting better:
a) the major programmes of expansion of housing,
education, social welfare a nd medical and health
services and transport had been drawn up and
accepted in public debate and the machinery of
Government overhauled and somewhat recast to ensure
their implementation and effective control.
b) The Police Force, under a new Commissioner and
Deputy Commissioner, has been significantly re-
organised, its relations with the public have been
improving, and its recruitment has picked up satis-
factorily both as to numbers and quality. It is
becoming a more effective weapon to deal with crime
the greatest social problem of the Colony. It has
already had some notable successes, particularly
in the field of narcotics, and I am hopeful that in
1975 with the increased support now forthcoming from
the public, the alarming rise in violent crime will
be arrested.
CONFIDENTIAL
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