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perspectives diverged as between the Office on the one hand and Peking and Hong Kong on the other. Thereafter, of course, the planning paper would need to take the two despatches into account and the revised version sent to Hong Kong and Peking for further comment.
3.
Mr Cortazzi said that the paper would also need to consider a third aspect: that of the Colony's relations with Britain and ways of combating anti-British feeling there, which was corrosive of the link between Hong Kong and Britain. After some discussion it was agreed that Sir Michael Palliser should write to the Governor towards the end of January drawing attention to the problem and emphasising the need for remedial action before the Secretary of State's visit. Mr Larmour proposed that during his visit the Secretary of State might hold a private meeting with senior officials to remind them of their responsibility to defend the British case on such matters as British social and economic policies (while, of course, confirming that it was their duty to defend the Hong Kong interests even where these conflicted with those of HMG).
4.
There was some discussion of the internal policies of the Hong Kong Government. It was agreed that while the Governor's policies. for social reform were progressive and resolute, there were some gaps which could be the subject of justifiable criticism in Britain. Important areas here were the field of labour relations and social security. Another problem was taxation policy where the Hong Kong Government's plans for reform on the face of it looked over-cautious. It was agreed that this section of the planning paper should subject Hong Kong Government's social programme to critical analysis. Sir Michael Palliser said that Singapore might provide a useful parallel; it was his impression that Singapore had made greater progress in social matters than Hong Kong. It was agreed that there were some similarities but a major difference was that Hong Kong had been affected by massive increases in population over the past thirty years. Another difference to which the Hong Kong Government attached importance was the problematic future of the Colony and the need, in their eyes, to provide a more immediately profitable climate for foreign investment. Both Mr Cortazzi and Mr Larmour thought that too much should not be made of
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