2.

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(b) The press were told on 26 January (paragraph 6 of Hong

Kong telegram No. 153) that this amphibious exercise

was to take place. It attracted little attention. But,

because of developments in China, there is an unusually

large number of foreign correspondents in Hong Kong, es

well as a B.B.C. team. It might be possible to dissuade

the British press from playing up this exercise;

this is by no means certain, and the foreigners would

write it up as they wished.

but

(c) The Chinese would in any case know of the exercise and

become aware of its nature. In commenting on likely

Chinese reactions in his telegram No. 142 (attached),

our Chargé d'Affaires in Peking admits that it is, at

this stage, difficult to say what these would be, but

considers we might get away with it provided there is no

American participation. However, he gives various

reasons for concluding also that the risk of a violent

Chinese reaction cannot be excluded. We consider that

there is a very real risk that the Chinese would regard

a large military exercise of this nature in Hong Kong at

this time as a military provocation and that, for this

reason alone, they would react violently to it,

The present extreme phase of the Cultural Revolution,

the recent successful pressure exerted on the Portuguese

in Macao and the fierce action currently being taken by

the Chinese in Peking against foreign Embassies and their

personnel (including the French) support this view.

SECRET

/As

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