TNAG-0574-FCO40-707-Hong-Kong-annual-review-for-1975-1976 — Page 41

Flag

CONFIDENTIAL

Mr Male

Mr Larmot

075

!KKO 14/31

PS/Lord Goronwy-Roberts

HONG KONG ANNUAL REVIEW 1975

1.

Mr. Cutary

M

M. Lamun 4 Lolis

73 Mr. Mate Pin

1/2 2/3 Min O'Keefe on 2/3

Mu. Dutty

Mi. Janvoice gu513 0/46

The Governor of Hong Kong has sent us his annual report for

1975 and a calendar of events.

2.

In my view, this is an unexceptional despatch, and I have the feeling that, during the drafting of it, Sir Murray might have had in his mind his undertaking to let us have two other despatches on the longer term future of Hong Kong, which should be with us soon. I would like to draw attention to two points.

3.

First, in paragraph 9, the Governor mentions the main sources of friction between the United Kingdom and Hong Kong during the last year. He might have added the increasing unease felt in political circles here at the situation in the Colony. He is quite right in asserting (in paragraph 14) that we in this Department are aware of the dangers of clumsy footwork in Hong Kong to meet minor and ephemeral criticism in Britain; but the problem is that criticism, if anything, is growing more deep-seated, better informed and more persistent. I think, too, that while the Hong Kong Government's response to the discovery of corruption has done much to contain an explosive issue, the revelations of last year have dealt a significant blow to the Colonial Government's prestige and sapped some of the goodwill here. The recent Fabian Society pamphlet is evidence of the trend. It contains little that is new, and some errors, but the basic thesis that conditions in the Colony, and its link with Britain, are anomalous is widely shared.

4.

Second, he gives a disturbing insight into the depth of the recent recession in Hong Kong by giving unemployment figures (in paragraph 16). This Department, in conjunction with the Overseas

Labour Adviser

المية العمل

CONFIDENTIAL