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CONFIDENTIAL
Present Confrontation Policy:
8. It is relevant to consider our policy at
this present stage of communist confrontation.
Our objective is a return to normal working
relations with China over Hong Kong if that
can be achieved. On the Chinese side this
postulates acceptance of our position and
authority in the Colony. On our side it means
that we continue (as we have done since 1949)
to accommodate ourselves to Chinese
susceptibilities wherever possible provided
always that we stop short of concessions the
effect of which would be to undermine our
authority in the Colony, and to avoid
unnecessarily provocative action while reacting
firmly to any Chinese pressures intended to
create a situation in Hong Kong similar to that
which now obtains in Macao. That we have
already gone a very considerable way to meeting
Chinese susceptibilities is shown by the Annex
to this submission which lists the concessions
made by H.M. Government, by the Hong Kong
Government and by the Chinese Peoples
Government respectively, since the start of
confrontation in May 1967. There is no clear
evidence that China is interested in placing
relations with Britain over Hong Kong or other
issues, on a basis which we would regard as
normal. Their present aim in Hong Kong appears
to remain one of achieving a position of
domination by exploiting the activities of
their local supporters. On present indications
their price for a return to "normality" in
CONFIDENTIAL
/Sino-British