TNAG-1222-FCO40-1532-Hong-Kong-annual-review-for-1982-1983-1983 — Page 34

CONFIDENTIAL

со to me

всё о

MKK 014/1

NKOVE KI NASLY NO. 51

2 3 MAY 1983

DESK ORANG

INDEX

ISTRY on Taken

Emile 76

Foreign and Commonwealth Office

London SW1A 2AH

Is

PA

N

Ro

CM116

20 May 1983

Sir E Youde GCMG MBE

Governor and Commander in Chief HONG KONG

Dear Teddy

HONG KONG ANNUAL REVIEW 1982-83

1.

Thank you very much for your Despatch of 9 May. I agree that in view of the sensitive nature of some of the content its circulation should be limited and I have arranged accordingly.

2.

You forecast a busy time in the coming year, but by any standards the year past has been far from dull! We appreciate very much the way in which you have worked to keep confidence alive. As you know, Ministers have also taken this problem very seriously and I think that the score sheet so far is encouraging. But we are fully alive to the fact that the demonstration of HMG's continuing support for Hong Kong will be an essential factor in maintaining confidence.

3.

I am sure that the readers of the despatch will find it particularly valuable in highlighting the coincidence in 1982/3 of worries about the future with the effects of the economic down-turn. But amid all the difficulties it was good to be reminded of successes such as the District Board Elections, the Aberdeen Tunnel and new housing provision. Hong Kong can justifiably be proud of these and other achievements. I found that this section underlined for me the gradual development of an articulate Hong Kong identity, a trend which we have to take seriously into account during the negotiations with Peking, balancing it carefully against the geopolitical realities of the situation.

Ima

Arch

R D Clift

Hong Kong and General Department

cc: Sir P Cradock KCMG

PEKING

CONFIDENTIAL