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the present Governor's policies are truly innovatory and radical and the extent to which public opinion in Hong Kong has been mobilised to give support to them. Both matters will require further consideration. I can explain the points of difference orally at a meeting tomorrow, if the PUS is able to hold one.
5. I have omitted at this stage an Annex setting out the British interests in tabular, factual form. The reason is that, while they can be listed, none, except the visible trade balance, can be quantified. Even invisible transactions, including the value to us of Kai Tak Airport in civil air negotiations, are scarcely quantifiable: we have received an estimate from Hong Kong putting the value of these to Britain at approximately
£318 million net per annum but we know from another context that the Central Statistical Office regard a methodology which produces so high a figure as suspect. We shall be pursuing this matter
further.
6.
FED concur.
12 February 1976
cc
Mr Cortazzi
Mr Larmour
Mr Masefield, Planning Staff
Mr Foggon, OLA
Mr Dart, Economists Dept.
Mullufte
PL O'Keeffe
Hong Kong & Indian Ocean Dept.
without enc.
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