CONFIDENTIAL

Background and Argument

4. It was envisaged in the guidelines covering

visits by U.S. warships and military personnel

to Hong Kong that an increase in the number of

naval vessels of up to 20 per cent over the 1964

level would be sufficiently unobtrusive not to

cause any problems for Hong Kong. The number

of visits in 1966 was in fact 391, which represented

an increase of 21 per cent over the 1964 figure.

The Governor has reported (Hong Kong telegram No.

426) that the number of visits so far this year

shows an increase over the 1966 level for the

same period, but he has also said that the

pattern of visits varies from month to month,

making comparisons over short periods somewhat

misleading • He is confident that, through his

own local liaison machinery with the Americans,

work

it will be possible tow out arrangements for

keeping the total number of visits for this year

at the same level as last.

5. The Chinese make it a practice to comment

unfavourably on the use of Hong Kong by U.S. naval

vessels and military personnel. They last

protested about naval visits in March, alleging

that the scale of British assistance to the

Americans had increased rather than diminished

since their previous protest in February 1966

(Peking telegram No. 311). The latest protest

appeared to be very much for the record and the

Governor of Hong Kong does not appear to think

that the rate of visits he proposes for this

year will lead to unacceptable difficulties with

the Chinese. There is therefore no good reason

why we should not agree that he should work out

details of such visits with the Americans in

Flag A

Flag B

80

Limiting the total number

дный

more

this

сусай

than the 1966 figure

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C

CONFIDENTIAL

/Hong

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