3.
Westminster, Haddon-Cave is distrusted in the same circles (in my view for only superficial reasons), but highly thought of in the City and, I understand, the top level of the Treasury and Bank of England.
9. It is an even choice because though Cater wins on every count except personal trust and administrative ability, these are the two factors most important in a Chief Secretary. Nevertheless my recommendation is Cater. In the first place I think that he would be a better guide to an incoming Governor in that he knows Hong Kong and its personalities so much better than Haddon-Cave, and his personality is less abrasive and much more flexible. Secondly he is considerably the older man and there would be time for Haddon-Cave to succeed him in due course. Thirdly, Cater cannot be expected to continue in his present job much longer. It is both too demanding and too narrow, and it had originally been agreed between us that I would find a successor this summer. He has agreed that the troubles with the Police have created a new situation in which it is desirable that he stays on a little longer, but I have agreed that he must be replaced before the end of the year. It would therefore be very convenient to transfer him to Chief Secretary about October/November. This also would be a signal here that his relinquishment of the Commissionership Against Corruption did not involve any weakening of the Government's commitment to stop any resurgence of corruption. He has, in the past, inspired considerable mistrust in the Civil Service here and some of the Personal and Confidential Reports on him make odd reading. While I do not discount their accuracy and accept that he has a tendency to intrigue, I think that promotion has steadied and humanised him and that his ambition has lessened. He is now a much more trusted figure than he was. Moreover his campaign against corruption has created great confidence in him amongst the younger members of the Service. do not think his unhappy relationship with the Police a bar to his appointment the relationship between the Police and ICAC must be improved in any case, and I believe that he could contribute more as Chief Secretary than as Commissioner.
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10. Negatively I think that given the importance of the role of the Financial Secretary, it would be a pity to change Haddon-Cave at this juncture, particularly since there is no obvious successor yet, though there could be in two or three years' time.
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