TNAG-0574-FCO40-707-Hong-Kong-annual-review-for-1975-1976 — Page 53

+

8.

some progress has been made.

CONFIDENTIAL

However I think we must

resign ourselves to an ebb and flow in the tides

of criticism and compliment, which can quickly change

direction and pace and will require constant attention.

14.

to meet criticism or pressures in the United Kingdom

of a minor or ephemeral nature by clumsy footwork

in Hong Kong. Whatever action we take here must be

seen locally as justified on its merits in Hong Kong's

own interest. Whenever we take steps which are

seen here as a sop to opinion 10,000 miles away, the

Government's credibility is reduced, with the dangers

which flow from this. I am sure that this point is

well taken in the Department.

I have constantly to beware of attempting

15.

I believe some United Kingdom attitudes to

be coloured by an unsubstantiated assumption that the

United Kingdom loses money on the Colony, because recently

it has run a trade deficit averaging about £70 m. a year.

We have put in hand detailed studies and the results

so far suggest that, even on a purely bilateral basis

the deficit, plus the cost to H.M.G. of the

new garrison, is more than off set by invisibles.

CONFIDENTIAL