TNAG-0737-FCO40-941-Hong-Kong-annual-review-for-1977-1978 — Page 34

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Mr Murray

HKK 0146ONFIDENTIAL

INDEX

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HONG KONG: ANNUAL REVIEW 1977

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Mr Hewart W2

ants please let me

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7/in

1. The Governor of Hong Kong has sent his Annual Review for 177 together with a C.lendar of Events. The Review covers 17. three main topics: progress in social fields, trade, with paulicular reference to the textile negotiations and the police force.

2.

That section on social. development, in common with the rest of the despatch, contains nothing new but when presented in this form gives a very striking picture of the really considerable improvements in the quality of life in Hong Kong, for which the Governor is to be congratulated.

4.

3. In discussing the textile negotiations and trade in general the Governor concentrates on the positive steps, which he is encouraging, to prevent the restrictions having too severe an effect on Hong Kong's economy and to remove the cause of complaint in the UK over the unfavourable balance of tradu,

The Governor provides a retrospective look, now more detailed with the benefit of hindsight, at the near mutiny in the police force last November. This serves to confirm my view that his action then in granting the amnesty was the only possible course in the light of his knowledge at the time. For the future I share the Governor's guarded optimism and I believe that the unqualified support which the Governor has received from Lord Goronwy-Roberts and the Secretary of State will do much to justify that optimism.

5. I recommend that I should reply to the Governor along the

. lines of the attached draft. I further recommend that the

despatch be printed and given Departmentul distribution.

15 March 1978

cc?

Mr Cortazzi

CON DENTAL

JAB Stewart

Hong Kong & General Dept