}
surprise to the local communist leaders. They had perhaps
forgotten that a very substantial proportion of the people
of Hong Kong consisted of refugees from the communist
regime in China who had "voted with their feet" for the
way of life with which Hong Kong could provide them.
4.
The economy of Hong Kong has shown quite remarkable
resilience in the face of the difficulties which confronted
the Colony during the last eight months of 1967. It has
suffered certain setbacks as a result of the disturbances
but its final trade figures for last year speak for
themselves. Hong Kong's imports, domestic exports and
re-exports for 1967 all showed increases over the
corresponding figures for 1966. In the case of domestic
exports the increase was 17%, a figure which represents the
highest growth rate since 1961.
5.
But the abandonment of violence does not mean that the
communists have ceased their campaign of confrontation in
Hong Kong. The expectation is that their efforts to
undermine authority in the Colony will continue unabated.
These efforts however will probably take the form of a long
term ideological struggle for the "hearts and minds" of the
people of the Colony.
6.
It may be thought that the recent decision by
Her Majesty's Government to withdraw their military presence
from Singapore and Malaysia by the end of 1971 will cause the
communists to redouble their efforts. But there is no
intention of reducing the strength of the Hong Kong garrison
and with our withdrawal from Singapore steps will be taken
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