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secure an alternative place of residence for them outside Hong Kong if they wanted to leave or some guarantees for their good treatment if they stayed. The latter would be difficult to obtain since all Chinese governments have regarded persons of Chinese race as Chinese nationals and, even if obtained, would probably be worthless. Nevertheless, those left behind for whom
Their
by
we have any responsibility would be used as hostages. treatment would depend on our response to Chinese demands; this means the Chinese could "squeeze" us for a prolonged period following withdrawal.
25. A special effort would have to be made to discharge our responsibilities to those Chinese men and women (whatever their national status) who have been closely associated with our administration, have openly demonstrated their loyalty to the British connections and are therefore particularly vulnerable to Chinese retaliation. In this category fall many serving in the Police Force and Civil Service and prominent in public service; many will be British subjects but some will have no claim to this status. These, particularly the Police, would have to be
It is difficult to given the option of remaining or leaving -
quantify this category; a very rough estimate is that they would number about 20,000 30,000 (with their dependents, about 90,000 135,000), but this figure might be a considerable
under-estimate.
Responsibilities for Assets
26.
It would be feasible in a planned and phased withdrawal to arrange the removal or transfer of a considerable proportion of British and Hong Kong-owned moveable assets (including military
There would and particularly "sensitive" equipment and stores). remain large investments in fixed assets (building and heavy plant) for which nothing could be realised except by agreement with the Chinese. We cannot expect Chinese acquiescence or co-operation in either operation, particularly so far as Hong Kong-owned assets are concerned.
27.
Foreign nationals would have to look to their own Governments for protection of their assets. The American assets (estimated recently at £40 million) would be very vulnerable and would undoubtedly be expropriated.
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