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IMMEDIATE HONG KONG TO COMMONWEALTH OFFICE (D.T.D.)

Telegram No. 1835

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7 December, 1967

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Addressed to Commonwealth Office telegram No. 1835 of 7 December,

Repeated for information to Peking.

My telegram No. 652 to Peking [No 1833 to Foreign Officel: Chinese Policy towards Hong Kong.

The information contained in this telegram seems me to throw much light on the latest C.P.G. Note (Peking telegrams Nos. 314 and 315). In general, it appears possible that an influential faction in China would like to disengage here but wish nevertheless to get the best possible terms for doing so, and to ensure that their position in Hong Kong is at least ostensibly "more favour- able" then : was when confrontation started. It appears that they regard pressure on the Mission in Peking as theist effective means of getting their way.

2.

In my telegram No. 1820 I have discussed possible 'gestures" that might be made to Peking at this time. But I am afraid that the information in my telegram under reference makes me increasingly doubtful about the ad- vantages of giving substantial further ground to the local Communists at this stage. I do not of course suggest that our policy in Hong Kong should be in any sense provocative, but if for their own reasons the Chinese are moving towards an end of confrontation, our best tactics would seem to be to adhere to our policy of maintaining law and order, and certainly not to make any concessions that will prejudice our position here in the long run. It is basically the adoption of a firm attitude on our part that has made con- frontation unpalatable to the C. P. G.; and unilateral gestures by 15 seem to me as likely as not to be regarded as signs of weakness and to lead them (as in Macau) to continue their pressure and raise their demands.

3. Much will depend of course on whether the local Communists themselves continue to behave in a provocative manner. My telegram under reference makes it clear that there has been criticism in China of the Chung Wah school's behava

and it may be that the other Communist schools here will have learnt a lesson. All of them staged a one- day provest "strike" yesterday: but no attempt was made by them (as we had feared) to stage demonstrations and the "counter-attacks" called for last week have not at any rate materialised in the shape of bombs. If, however, they do revert to violent and illegal tactics, I do not see how, given the stage of public opinion on the matter, I can avoid proceeding against the schools.

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/Foreign Office

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