Ho Kong's Policy towards China

United States Naval Visits

Effect of Chinese Cultural Revolution

in Hong Kong

Present Folicy of local Communists

SECRET

15. 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 authorities in Formosa, and by ensuring as far as possible that the latter does not use Hong Kong as a base for its subversive and intelligence

activities against the mainland.

16. Recreational visits of American warships and troops

to Hong Kong have been a recurrent source of friction in relations with China since escalation of the war in

Vietnam. American warships have been visiting Hong Kong

since the end of the Second World War. No warlike

facilities are provided. These visits bring considerable

economic benefits to Hong Kong and play a part in

maintaining public morale. Moreover, they help to keep the Chinese guessing about the American reaction to any attack on Hong Kong. We have therefore rejected numerous Chinese protests about these visits, whilst nevertheless agreeing with the Americans certain "guide lines" restricting their use of the Colony's facilities. most recent of these protests occurred as a result of a visit to Hong Kong in May 1968 of the nuclear powered

aircraft carrier ENTERPRISE.

COMMUNIST CONFRONTATION

17. The revolutionary ferment of the "cultural

The

revolution" in China spilled over into Macao at the end of 1966 and into Hong Kong in 1967. In both Colonies local communist organisations challenged the authority of the local governments. In Hong Kong this confrontation initially took the form of demonstrations and disturbances accompanied by organised stoppages of work in essential services; when these measures proved ineffectual, communist tactics degenerated into outright terrorist

activities.

18. Since the end of last year the local communists have avoided violence in their programme of confrontation with the authorities. They have instead embarked upon a long term ideological struggle for the "hearts and minds" of the

/ people

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