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BRIEF FOR HONG KONG MINISTERIAL COMMITTEE

INTERIM REPORT: HONG KONG

(PAPER NO. K(67)2)

This is an interim report by officials on emergency action to be taken if, in the immediate future, the situation

We believe that the Chinese intentions (while unpredictable in the present

revolutionary" ferment) are not to force us out of the

in Hong Kong gets beyond our control

tt

Colony but to humiliate us In these circumstances we see

no prospect of being able to negotiate an orderly withdrawal

and we

see no alternative but to continue our present policy for the time being. We have recommended that, in spite of some formidable difficulties, contingency plans for an

emergency evacuation should be prepared; it is recognised,

however, that there are severe limitations on what an

evacuation could achieve in the absence of Chinese co-

operation or acquiescence.

2. The interim report is to be followed by a further detailed

study on future policy in Hong Kong, in the event that the

Colony successfully weathers the present storm. This will

deal in particular with the case for (and the possibilities of) a negotiated withdrawal at a suitable and favourable

opportunity in the future. The tentative outline of this

longer term study is attached (Annex A).

Chinese intentions

All

3. Ministers should be aware that there was a slight difference of opinion among officials, one department (D.E.A.)

holding that, even in present circumstances, we should not

rule out the possibility of a negotiated withdrawal, using as our negotiating cards the continuation of China's trading

advantages which they derive from Hong Kong and the substan- tial sterling balances we hold on the Colony's behalf. other departments, however, consider that China's present attitude permits no such solution, although we do not rule it out as a possibility at a later stage if the Cultural

Revolution comes to an end and the attitude of the Chinese

Government becomes more rational. This possibility will, of course, be covered in the longer term study.

Problems of Planning for Evacuation

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