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efficiently run Colony with greater resiliance and ability to cope than was Macau. Provided therefore that the confidence of the local population can be maintained and the security forces are not completely exhausted, there is no reason why Hong Kong should not continue to hold out for some months. The test here could well be the
determination of the Chinese Government to escalate the disturbances to the point when, in order to remain in Hong Kong, we must capitulate to whatever demands are made and, in effect, accept Chinese domination of Hong Kong.
7. The worst possible case would be if China had decided to sacrifice the economic benefits she derives from Hong Kong and to drive us out
of Hong Kong completely.
8. Our aim must continue to be to maintain peace in Hong Kong and
to deal with any disturbances there with firmness and fairness. We
have already agreed that the Hong Kong Government can take action against loudspeakers on the Bank of China building which were used to incite violence and H.M.S. Bulwark, a Commando carrier, should arrive in Hong Kong on Friday, 26th, the intention being that although this would be treated publicly as a routine visit, her presence would
help the morale of the police force and the local population.
9. The Governor also wishes to have authority to deport a limited
number of the known Communist leaders in Hong Kong. A list of the
24 top leaders has been prepared, but the Governor would not propose to deport them en masse, but to start off with two or three if the situation deteriorates further in Hong Kong and their arrest is regard- ed as vital. There is no certainty that mainland China would allow them to be put across the border, in which case they would have to be detained in Hong Kong.
10.
The Governor has also under preparation emergency regulations to enable him to deal with the Communist press who are in flagrant breach of the law in inciting the population to violence.
Here again his proposal is not to take legal action against the newspapers but to shut down the printing presses. But he would not take action on any particular case without prior reference back to the Commonwealth
Secretary.
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11.