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for accountability, particularly in the fiscal field, which have been a normal feature of our relations with other Dependent

Territories: successive Governments here have been much

preoccupied with colonial problems in other parts of the world and were prepared to allow a good deal more local autonomy in Hong Kong which seems to have been generally regarded as well- managed and capable of looking after itself. The resources devoted to Hong Kong affairs in the Office have thus been sufficient for our non-interventionist role but not adequate for maintaining the links necessary for a proper relationship with a Crown Colony..

25. The burden of maintaining the essential Whitehall/Hong Kong

connection is carried in Hong Kong by the Governor whose role is crucial both in giving the lead in Hong Kong and defending the Colony's interests abroad, even when these are in conflict with those of HMG. This burden has to be carried against the

resistance of some senior officials in Hong Kong; and the interaction of these on a predominantly conservative Legislative and Executive Councils seems to have been a significant hindrance to social progress in line with economic growth. Some of those concerned, having enjoyed a wide measure of autonomy in recent years and genuinely (and rightly) proud of Hong Kong's achievements, seem to have resented what they considered to be interference from London where knowledge of

local conditions is thought to be lacking and too conditioned by domestic political considerations. Correspondingly they seem to have failed sufficiently to appreciate that there is genuine concern here about social conditions in Hong Kong. Absence of elective institutions in the Colony seems to have rendered them less capable of appreciating the political processes which affect consideration of policy here; and our own economic difficulties which are given wide publicity in the English language newspapers have created widespread disillusionment with Britain. There are many, of course, who do not think in this way (particularly in the middle ranks of the Hong Kong Government service, both expatriate and Chinese); but anti-Whitehall and

/anti-British

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}