TNAG-0848-FCO40-1058-Future-of-Hong-Kong-New-Territories-leases-1979 — Page 89

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impact of competition from Hong Kong upon employment in the British industries concerned particularly the textile industry, has aroused very strong feelings. In Hong Kong the bulk of the population realise that the link with the UK is the sole basis for the Colony's continued existence as a separate entity. But the implications of the colonial relationship are not always understood. There is resentment among the Chinese and expatriate establishments at the way in which, as they see it, the British Government has forced the local administration to adopt policies which they do not consider appropriate to Hong Kong. And there is a widespread feeling that the UK has not been sufficiently robust in defending

Relations Hong Kong's trading and other interests internationally. with Hong Kong will therefore contime to require careful

attention.

HONG KONG AND GENERAL DEPARTMENT

March 1979

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