TNAG-0568-FCO40-701-Planning-paper-on-Hong-Kong-1976 — Page 154

2.

THE THRUST OF THE PLANNING PAPER, ON THE PUS'S INSTRUCTIONS, IS TO DISSUADE THE SECRETARY OF STATE FROM

RAISING THE INTERNAL ADMINISTRATION OF HONG KONG WITH THE CHINESE GOVERNMENT DURING HIS VISIT TO PEKING IN MAY. I NEED NOT REHEARSE THE ARGUMENTS AGAINST THIS: THEY ARE COVERED IN YOUR DESPATCH OF 12 FEBRUARY WHICH IS VERY MUCH IN LINE WITH THINKING HERE. THE PUS AND THE SUPERINTENDING DEPUTY SECRETARIES, HOWEVER, BELIEVE THAT AN ESSENTIAL ELEMENT IN A POLICY OF POSTPONING DISCUSSIONS WITH THE CHINESE UNTIL THE MID-1980S IS THE EVOLUTION OF INTERNAL POLICY IN HONG KONG WHICH MAKES THE PRESENT SITUATION MORE DEFENSIBLE IN PARLIAMENT AND IN POLITICAL CIRCLES GENERALLY. THEY ARE DISINCLINED TO BELIEVE THAT THE PRESENT FLURRY OVER THE FABIAN PAMPHLET IS A TEMPORARY PHENOMENON. AS THE LARGEST REMAINING COLONIAL TERRITORY, HONG KONG IS A MATTER OF PROGRESSIVELY INCREASING PARLIAMENTARY INTEREST AND THEY BELIEVE THAT SUCCESSFUL DEFENCE OF THE SECRETARY OF STATE'S CONSTITUTIONAL RESPONSIBILITIES TO PARLIAMENT REQUIRES A FORWARD LOOK AT THE DIRECTION WHICH THOSE POLICIES SHOULD TAKE UP TO THE MID -1980S. I HAVE POINTED OUT THAT THE IMPLICATION MAY BE A MORE INTERVENTIONIST POLICY FROM LONDON THAN HAS BEEN THE CASE IN THE PAST: AND POINTED OUT THE DIFFICULTIES ANY GOVERNOR WOULD HAVE IN IMPOSING POLICIES WHICH DO NOT COMMAND THE ASSENT OF UMELCO AS REPRESENTING HONG KONG OPINION. THE SUPER INTENDING DEPUTY SECRETARIES ARGUE THAT THESE WOULD BE GOOD POINTS IF UMELCO WERE PROPERLY REPRESENTATIVE, OR INDEED SELECTED FROM A WIDE SOCIAL BACKGROUND: BUT NOT OTHERWISE.

3. THE THRUST OF THE DRAFT PLANNING PAPER (WHICH I HOPE TO SEND YOU BY BAG ON FRIDAY) IS THUS THAT EXTERNALLY NOTHING COULD OR SHOULD BE DONE UNTIL THE MID-1980S: AND THAT THERE SHOULD BE A FORWARD PLAN FOR INSTITUTIONAL DEVELOPMENT IN HONG KONG (CONSISTENT, OF COURSE, WITH THE CHINA DIMENSION AND BASED LARGELY ON THE PLANS OUTLINED IN YOUR DESPATCH OF 30 MAY 1974) COMBINED WITH FISCAL REFORM TO PROVIDE GREATER RESOURCES TO ACCELERATE PRESENT SOCIAL PROGRAMMES ONCE THESE HAVE REGATHERED MOMENTUM FOLLOWING THE RECESSION. THERE SHOULD ALSO BE ANOTHER LOOK AT HOURS OF WORK, WAGE LEVELS, SOCIAL SECURITY ETC. ABOUT WHICH MINISTERS HERE ARE INCREASINGLY UNDER PRESSURE. I THINK ANY DESPATCH THAT YOU WRITE MIGHT CONSIDER THE PROSPECTS FOR ALL THIS OVER A TIMETABLE TO 1985 WITH DUE EMPHASIS ON LOCAL SOCIOLOGICAL AND ECONOMIC FACTORS WHICH FAVOUR (OR IMPEDE) SUCH CHANGE. I MIGHT ADD THAT THE SUPERINTENDING DEPUTY-SECRETARIES AND SOME MINISTERS BELIEVE THAT THE PRESENT MEMBERS OF UMELCO AND OTHER INFLUENTIAL OPINION IN THE COLONY MAY HAVE TO SWALLOW RATHER MORE THAN THEY WOULD LIKE IN THE INTERESTS OF MAINTAINING THE

ESSENTIAL LINK WITH BRITAIN.