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CONFIDENTIAL
11.
At present rates of construction the housing problem should have become manageable in the second half of the decade (paragraph 12 (c))·
12. The central directorate of Government
reorganised (paragraph 12(d)).
13. Satisfactory progress of district administration (paragraph 12(f)).
14. Plans for expansion of technical and tertiary education (paragraph 12(g)). 15. Large number of Government scholarships
Boed/
to United Kingdom institutions to make up for shortage of local professionals (paragraph 12 (L)).
Relations with China
16. Satisfactory state of official and
economic relations with China (paragraph 13)
7. Emergence of the new town of Shenzhen:
the importance of supporting it (paragraph 14).
18. Rise in discussion of the future of
Hong Kong, but no slide in confidence, and no basis on which to urge action by the Chinese because of inminent catastrophe. Preferable to stick to present policy of insisting problem exists which must be faced and solved
soon in mutual interest (paragraphs 15 and 16).
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CONFIDENTIAL
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