TNAG-0734-FCO40-938-Reports-of-Standing-Committee-on-the-Planning-Progress-of-Ho-1978 — Page 29

CONFIDENTIAL

- 3.

for a UK Inspector of Schools to visit Hong Kong. HKGD are in contact with the Director of Education in Hong Kong to agree details of timing, etc.

g.

Relations with China

Mr J Stewart reported that the Political Adviser in Hong Kong had been asked to prepare the initial draft for a new paper on this question. Mr Cortazzi and Mr Murray asked to see copies of this first draft. It was agreed that although there was already some concern about the longer term future in Hong Kong, there would probably be no

need to consider changes in the present relationship

for at least another two or three years.

Item 2: Mr Michael Stewart's Report on his visit to Hong Kong

a.

Distribution of the Report

It was agreed that HKGD should submit the report with comments to the Secretary of State. Thereafter it might be sent formally to the Governor with an indication of Ministers' views. In the meantime,

the PUS has sent a copy to the Governor on a strictly personal basis.

b. Economic Margement

The meeting endorsed Mr M Stewart's conclusion that the Government would need in future to take a

more active role in the planning and management of the economy, particularly in encouraging and assisting industrial development. Some concern was expressed at the apparent reluctance of the Hong Kong Government to take a more active approach to economic planning.

The one body that had so far been set up, the Advisory Committee on Diversification, seemed unlikely to

achieve results.

CONFIDENTIAL

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