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E.

1.

COLONIAL

OFFICE

ARE THERE ANY MEANS OF FRUSTRATING CHINA'S INTENTIONS?

A United Nations Solution. If a soparato statue could be found for

Hong Kong, indopendent of Britain or China, wo would have dono what wo

could to protect the non-Communist population of Hong Kong from forcible

"liboration". At the same time tho difficul tics over constitutional

advanco would be romoʻrod.

2. It is perhaps not altogether beyond tho bounds of possibility that

sono status may ovontually bo found for Formosa involving a noutralised

solf-govorning island, conceivably under United Nations guarantoo. If this

should over como abou, it might bo to our advantago to sook a similar solution for Hong Kong. But there is no real prospect that the problem of Formosa could be solved in this way.

3.

Another possibility, in the event of a serious move by China against

Hong Kong, would be to romit the question to tho United Nations and work for

a Danzig-typo sottlompnt in which the territory would be placed under United

Nations administration.

4. It is most unlikely, howovor, that China would agroo to either of thoso solutions. Successivo Chinoso Govornmonts have rogardod Hong Kong as

Chinose territory to be rocovored in due courso. The prosont Chinoso

Government is almost cortain to deny that the United Nations has any standing

in tho question: it has on a number of occasions in a United Nations

context made it clear, through Communist Momber States of the United Nations,

that tho futuro of Hong Kong is not a matter for the United Nations but rosts botwoon China and Britain. Any change in this attitude is inconceivable in The foreseeable future.

5. We considor below who thor thoro aro any moans of bringing prossuro

to boar on China to accept a United Nations solution.

6.

Economic Sanctions. An oconomic onbargo on trado with China o.g.

of the kind operated during the Korean War could, while China romains at

loggorhoads with Russia and other countrios of tho Soviot bloc, bo

oxtromoly offoctivo. But it does not soom at all likely that, for the sako

of Hong Kong, wo could secure the agreement of the free world to mount such

an cnbargo. France for one would probably rofuse to fall in linc. There

would bo other countrios who would be reluctant to join in on the grounds

that they do not mix trado with politics. Thore could in any case bo no

cortainty that economic isolations would drive China to its knoos. If tho

ombargo was really offcctivo, Hong Kong would coaso to have any economic

valuo to China. The risk would be that a China driven in on itself in

this way would be a moro dangorous and determined noighbour and would not hositato to tako ovor Hong Kong.

American Involvement

To be distributed at Meeting

18th August, 1967.

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