CONFIDENTIAL
Para 157
HKK306/
as indicated to Sir Denys Roberts, provided it was understood that, this could only arrive in London at a time that left little room for change. The fact was that, as HM Treasury would know, budget figures tended to crystallise at a particular time late in the budget formulation stage and decisions had to be taken rapidly. It would no therefore, be realistic to attempt to negotiate an agreed budget with the FCO.
14.
Lord Goronwy-Roberts said that if this were the position, it would be necessary to devise a means whereby the Governor could infor him in confidence in advance of how thinking on the budget was progressing. There had, for example, been a reasonable expectation that the 1976/77 budget would take certain steps but, in the event, it had been regressive. That demonstrated the need for knowing clearly what was envisaged. Sir M MacLehose said that he could not understand how the recent budget could be regarded as regressive. had provided for a 10% increase in the input of resources in real ter (16% in money terms) and SHK 280 million in additional taxation. The problem was not that of Hong Kong taking the FCO into its confidence but of seeing how this could be done while ensuring that the budget was put together in a proper and expeditious manner. He expected to be in the UK in December and would be ready to discuss budget prospects in general terms on the basis of departmental estimates which should by then be available. He could supplement such a discussion by a written prognosis about a fortnight before Budget Day Lord Goronwy-Roberts agreed that this would be an acceptable procedure.
UK/HONG KONG RELATIONS
15. Lord Goronwy-Roberts said that he was concerned that there should be as. full as possible an understanding of Hong Kong in Britain. The position in this respect had improved a good deal in the last two years. He was disturbed, however, by reports of hostility towards and criticism of Britain in Hong Kong. During his own visit at the beginning of 1975 it had even been suggested to him that his questioning of what went on in Hong Kong was unwarrantable interference. It was necessary to remedy the situation if the emergence of a vociferous minority anxious to see the UK disengage from Hong Kong were to be avoided. Sir M MacLehose said that he advised people in Hong Kong not to rise to criticism from visitors but they were not always able to control themselves in the face of unfair criticism by visitors. Doubts were now being expressed in Hong Kong about maintaining the present full programme of visits by MPs and others. Lord Goronwy-Roberts said that he would not favour reducing the number of visits. It was necessary, however, in selecting visitors to choose persons who were objective enough to accept that Hong Kong was an anomaly, but an anomaly which worked.
/CHANGES
It
8
CONFIDENTIAL
No comments yet.
Private notes are available after approval.