TNAG-0737-FCO40-941-Hong-Kong-annual-review-for-1977-1978 — Page 36

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Mr Muray

CONFIDENTIAL

PS/Lord Goronwy-Roberts,

HONG KONG: ANNUAL REVIEW 1977

2400

HKK014/2

⚫E MAR 1973

DISK OFFICER INDEX

PA

Hop

Mr Stewart pr. N. Thonpon

Tükən AC

82514 Despatch

been sent

for punting.

1. The Governor of Hong Kong has sent his Annual Review' for 1977 together with a Calendar of Events. The Review covers three main topics: progress in social fields, trade, with particular 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 trade.

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

For possible course in the light of his knowledge at the time. 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 Departmental distribution.

4

A B Stewart

Hong Kong & General Dept

15 March 1978

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CC:

Mr Cortazzi

CONFIDENTIAL

red this a

1 April

314

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4573