CONFIDENTIAL

ANNEX B

SINO-BRITISH RELATIONS

HONG KONG

Hong Kong has been the major cause of worsened

relations with China during the past year. Below we examine

Communist tactics from May 1967 onwards;

areas of

particular Chinese sensitivity; the border and the Communist

press; Chinese aims and tactics.

"Confrontation"

2.

Disorders in Hong Kong began with a minor labour

dispute at a plastic flowers factory. This was inflated for

political reasons by the Communists under the influence of

the "Cultural Revolution" on the mainland, and led to riots

and arrests. These led to the presentation by the

Chinese of the Five Demands, which are as follows:

'Immediately accept all the just demands put

forward by Chinese workers and residents in

Hong Kong;

Immediately stop all Fascist measures;

Immediately set free all the arrested

prisoners, including workers, journalists

and cameramen;

Punish the culprits responsible for these

sanguinary atrocities, offer apologies to

the victims and compensate for all their

losses; and

Guanratee against the occurrence of similar

incidents."

CONFIDENTIAL

/The

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