TNAG-0737-FCO40-941-Hong-Kong-annual-review-for-1977-1978 — Page 35

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HKK 014/2

CONFIDENTIAL

letter

Sir M MaoLeho se GBE KCMG KOVO

Governor

HONG KONG

JAB Stewart

HONG KONG: ANNUAL REVIEW 1977

1. All of us here have read with a great deal of interest your Review of the past year. I am sending the despatch for printing in the Departmental series,

2. The grouping together of the numerous areas in which real social progress was achieved in 1977 produces an extremely impressive list which I am sure you must find personally very satisfying. Lord Goronwy-Roberts has asked me to pass on his own congratulations and his appreciation for your efforts. We fully share your determination that this progress should continue and we also share your belief that the dangers of social upheaval, which could be caused by such change, aua well worth facing and can in any case be contained.

3.

We concur absolutely with your comments on the need

for Hong Kong to redress its trade imbalanoe with its trading partners and as you well know in this field too we appreciate your efforts as far as the UK is concerned, One point on which I cannot fully agree is that such an imbalance with the UK is the sole cause of oriticism from

here. As you have alimowledged Li the past there have been failings in Hong Kong and these have rightly been pointed out by people genuinely interested in the welfare of those living in Hong Kong. Like you we expect such criticism to diminish significantly as a result of the recent improvements together with those planaud for the futur'd.

4. Your summary of the events of lust year dealing with the police is very full and frank, It is easy to be wise

after the event but we are still satisfied that the action you took was necessary in the light of conditions at the

time.

As you know, you have the full support of Ministers

in continuing to rout out corruption and also in dealing with any further irremmonsible ectivities within the Police Force.