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HWB 4/2
TOP SECRET
30 January, 1968
92
(al/e
I enclose a complete draft of all sections of the Defence Review Working Party's long-term study on the future of Hong Kong.
Sections A-E were originally circulated under OPDO (DR)(17)52 of 18 August. They have been revised in accordance with the minutes of the Working Party (OPDO(IR)(67)35th Meeting, Item 3) Cooper's letter D22/9B of 24 August and Annex B of OPDO(DR)(67)56 or 6 September The opportunity has been taken to introduce a few other minor amend- menta - some made necessary by the passage of time (e.g. updating of the sterling balances figures in paragraph 14 of Section B and deletion of the reference to "the maritime force from Australia" at the end of paragraph 3 of that Section).
There are some points to be considered on Sections A-E in their present form :-
(1)
(11)
We are not happy about the Bald statement in the first
sentence of paragraph 21, Section B, that "our position in Hong Kong is an impediment to the development of better relations with China" The extent of China's reliance on
the economic benefits it derives from the Colony in our hands might suggest otherwise, although we accept that our presence on the Chinese mainland must tend to irritate the Chinese and that their Government is bound to react accordingly in its public dealings with us. We would prefei to refer to our position there as "an irritant in" rather than an impediment to" the development of better relations. Any amendment would need to be reflected in conclusion (c), Section G.
**
I think you will agree that in the light of developments
Section D: Chinese Intentions needs extensive revision; perhaps we should look again too at paragraph 9 of Section C Conclusions (f) - (j) in Section & purport to cover Section D. They do not in fact do so as the Section is now drafted: I have used these conclusions as a vehicle to suggest the lines on which a new Section D might be framed. (You will no doubt realise that I have drawn on JIC(68)15 (Final): The Threat to Hong Kong, of which we shall need to take account). When we do revise Section D,
I hope that it may be possible to compress these particular conclusions.
J. Murray, Esq., CMG., Foreign Office.
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