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consistent with security or other vital interests, of any

action in Hong Kong likely to provoke the Chinese, feed their

distrust of our intentions, or make it more difficult for them

to appear to be taking a soft line with us. I wish to

emphasise the importance of this, because there has been some

suggestion recently that what we must aim at is not a return

to pre-confrontation co-existence, but something more, namely

the attainment of a position of greater strength in the

colony, which would improve our defences against the next

communist attack. This seons to me a dangerously unrealistic

course which disregards the hard facts of our situation in

Hong Kong, quite apart from jeopardising any chance of

improving Sino-British relations. The main condition for

our continued control of Hong Kong is no longer our own

strength, which nowadays will always be minute in relation

to the Chinese forces arrayed against it, but Peking's tacit

agreement, largely for economic reasons, to co-exist. If,

by seeking to increase our own strength at all costs, we makc

it less worthwhile for Peking to maintain their co-existence,

we do ourselves more harm than good Moreover, if we show

that the only cffect of Peking exercising control and

restraint over the local communists is that we not only

fail to nove towards a settlement, but even adopt tougher measures, then we provide a clinching argument for

extremists, whon we may be sure exist, whether in Peking, Canton or Hong Kong.

The line wo have taken hitherto, that

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/we will

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