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3. The Chinese are at the moment prepared to accept the
existence of a colony on the mainland of China because it
brings them positive gains both economically and politically
Shed Section 1
(see paragraph above).
They may also be deterred from
attempting to take over the Colony by the consideration that
this would involve administering a large number of potentially
disaffected Chinese at a time when their internal economic and
political structure is not well prepared to deal with the
problems that this would create.
Short-term Aims
394.
China now appears to realise that the campaign against
the Hong Kong Government in 1967 was a failure. Violence has
been condemned and virtually abandoned. The Chinese would
doubtless still like to achieve a "Macao-type" situation, but
apparently recognise that this cannot be brought about in the
immediate future. At present, the policy of the Chinese is to
maintain and expand their commercial interests in the Colony.
Politically, the Chinese will no doubt profit from their
experience of the last year in rebuilding the local communist
apparatus and seek through this and through increased propaganda
activities to broaden their base of support in Hong Kong. A
heightening of the level of propaganda would probably precede
action to take over the Colony. The nature and intensity of
propaganda about Hong Kong, both within the Colony and outside,
should therefore serve as an indicator of Chinese intentions.
/Contingencies
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