CONFIDENTIAL

}

Shy? They, ere not normally Every in forenled fim the fate of

Just people.

Is it love of

since May, 1967.

4. The origins of this situation do not require detailed

rehearsal. Last summer during a particularly violent phase

of the Cultural Revolution the Chinese Government, no doubt

encouraged by their carlier success in humiliating the

Fortuguese in Macao and possibly led on by their extremist

supporters in Canton and Hong Kong, gave open backing for a

communist campaign of demonstrations and violence designed to

intimidate the Hong Kong Government. Though the campaign

failed, thanks to the firmness and flexibility of the Hong

Kong Government, and violence was called off last December,

confrontation continues and the various Chinose demands

addressed to the Hong Kong Government have not been withdrawn

or allowed to lapsc. The disputo now centres around the

communist prisoners (some 700 in all) held as a result of

last year's disturbances, whom the Chinese Government wish

to see released. Exchanges between the British and Chinese

jace (see parabi, Governments in March and April have not led to any progress.

for they diet hope chiavi a Oneno рана

A

jma 8)?

The present state of our relations is the result.

Will Confrontation End of Itself?

5.

It is important here to dispose of the theory that

confrontation is a merely temporary aberration, a reflection of

the more violent phase of the Cultural Revolution, and that

as more restrained counsels come to prevail among Chinese

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/leaders

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