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Сору
SECRET
HONG KÙNG
RELATIONS WITH CHINA
Defence, for
Hang Yang
his warst to 27
in Jansen,
4962.
The Communist People's Government of China (like previous Chinese
Governments) regard Hong Kong as Chinese territory, wrested from the mainland
during a period of weekness and to be recovered in due course. The Chinese
official attitude, pronounced in March 1963, and re-affirmed in 1965, is that
Hong Kong and Macao are legacies from unequal treaties in the past and that
the Chinese claim will be settled peacefully through negotiation when the time
is ripe. Because they regard the Colony as Chinese territory to be recovered,
the C.P.C. have dropped strong informal hints from time to time that any advance-
ment of Hong Kong along normal colenial lines towards self-government and
independence could not be tolerated. Moreover, the C.P.G. have let it be known
that they would deprecata discussion of Hong Kong in the United Nations
Committee of 24 and have reacted to Russian taunts that China tolerates
colonies on its doorstep by making it clear that they regard the recovery of
Hong Kong and Macao as a matter for the Chinese Government alone.
2. China has very strong economic incentives to leave undisurbed the
status que in Hong Kong. China earns an annual surplus of some £200 million on
invisible and visible trade accounts through Hong Kong (a very substantial part
of its foreign exchange earnings), and they are making very substantial efforts
to increase these earnings. Principal sources are food exports to Hong Kong and
remittances through Hong Kong from overseas Chinese. Direct exports from China
through Hong Kong are no longer on a large scale, but China is increasingly
using the facilities offered by Hong Kong export houses and banks for its trade
with the West.
3. Hong Kong's policy towards China has been one of "firmness without
provocation"; in particular the Colony is careful not to cause offence, e.g.
by avoiding official contacts with the Nationalist regime in Formosa and by
ensuring, as far as possible, the latter does not use Hong Kong as a base for
its sabotage and intelligence activities against the mainland.
4.
Recreational visits of American warships and troops to Hong Kong have been
a recurring source of friction in relations with China since escalation of the
war in Vietman. American warships have been visiting Hong Kong since the end of
HOLA HA
SECRET
/the
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