TNAG-0613-FCO40-761-Visits-of-Governor-of-Hong-Kong-to-UK-1977 — Page 186

CONFIDENTIAL

should not take place until November, though not necessarily for the reasons that he gives. The frequency of the Governor's visits during the past two years may be seen in retrospect as necessary to the interventionist policy towards Hong Kong which was being worked out and on which we have embarked. Now that we have an agreed policy, there is less need for frequent consultations with the Governor and his own proposal amounts to a tacit acknowledgement of this

situation. It is also a fact that the Governor's last two visits

gave rise to a good deal of undesirable speculation and publicity in Hong Kong about HMG's intentions and to a certain amount of unnecessary tension. A confrontation atmosphere tended to build up

which was not conducive to useful discussions. It is true that the

Governor's visit last July lead to agreement on the Planning Paper, though the ground-work had been laid before, but that in December was not, I suggest, sufficiently conclusive to warrant the Governor's continuing to make visits twice a year. Most matters raised when the Governor is here have to be resolved in subsequent correspondence. The major outstanding issues, such as the budget for 1977/78 and the Hong Kong Government's social and labour programme for next year, could be better handled in this way. The Governor himself has suggested that "ideas on the budget" could most usefully be dealt with in writing. I suggest that he is right; Economists will not be able to provide a detailed analysis of the budget before May and discussion by correspondence during the summer should enable us to be ready for full-scale discussions in November.

4.

Whether or not the Governor makes a visit this summer, there will still be several opportunities for discussions with the Hong Kong Government. There is Lord Goronwy-Roberts' possible visit to Hong Kong, which the Governor may well have had in mind as a reason for delaying his next visit. Mr Murray and I will be in Hong Kong later this month. Senior Hong Kong Government officials are now in the habit of calling into the Office when they are on leave or on other business in this country. If someone asks why the Governor is not visiting England this summer, we shall be able to say that he is staying in Hong Kong during the jubilee celebrations.

2

CONFIDENTIAL