TOP SECRET

of the Chinese population which have, or are entitled to, the status of

citizens of the United Kingdom and Colonies.

these categories are -

British troops and families

British subjects and Commonwealth citizens of non-Chinese race and their families

Foreign nationals (other than Chinese)

and their families

Chinese possessing, or entitled to

claim, citizenship of the United Kingdom and Colonies

The numbers involved in

30,000

31,000

14,500 (of whom 4,600 are

United States citizens)

1.9 million approximately

Some of these last 1.9 million have been very elosely associated with our administration and are particularly vulnerable to Chinese communist retaliation. These might amount to something over 100,000 including

their dependants.

Material Assets

12. There are considerable British and foreign assets in the Colony. British investments are large (although no reliable figure is available). On the other hand, Hong Kong has sterling holdings of over £300 million which are held in the United Kingdom; the disposal of these in the event of our withdrawal would be a matter for our decision, and we shall cover

this problem in our wide-ranging study of future policy.

Courses of Action

13. Recently it has become necessary, because of the increased violence being used by the local communists, to take very firm steps to disrupt

the communist leadership in Hong Kong. This action has so far reduced

the scale of disturbances, but it could lead to stronger counter-measures.

This is a risk that we must take rather than allow the situation to get

out of control. Nevertheless with all the uncertainties in China and

Hong Kong we must consider what we could do if the situation suddenly deteriorated or Peking decided to intervent and push us out. This might

present us with one or more of the following choices

(a) to be prepared to accept a Macao-type situation;

(b) to seek to negotiate an orderly withdrawal;

(c)

to carry out an emergency evacuation.

TOP SECRET

Share This Page