SECRET

4631

For reg.

2817

THIS DOCUMENT IS THE PROPERTY OF HER BRITANNIC MAJESTY'S GOVERNMENT

CO Ref.: HWB 13/7/67

COMMONWEALTH OFFICE PRINT

25 July, 1967

Copy No.

76

HONG KONG: PRINCIPAL DEVELOPMENTS DECEMBER 1966–JUNE 1967

Governor of Hong Kong to the Secretary of State for Commonwealth Affairs

(No. 1164. Secret) Sir,

Hong Kong, 23 June, 1967 Received 27 June, 1967

I have the honour in this despatch to attempt a review of certain major events which have affected Hong Kong since my last periodic despatch dated 15 December, 1966,† up to 4 June, 1967.

2. The progress of events in China has continued to cast its shadow on the colony. The imposition at the end of 1966 and the beginning of 1967 of some measure of control over the youthful and hitherto totally undisciplined Red Guards at first encouraged a less anxious mood amongst residents here. However, by the early spring, events in China and the apparent inability of the régime to control "Red Guard" mobs effectively even in Peking re-aroused apprehension about what the future held for China and, by extension, for Hong Kong.

3. In the spring of 1967, the situation did not look too dangerous. By the end of March, border incidents (mainly matters of commune officials across the border chasing refugees into British territory), which had earlier in the year created some concern, ceased. The military takeover of the administration in Kwangtung province came to be seen as a measure for ensuring stability in the province and therefore very welcome from Hong Kong's point of view. The Canton Fair which took place from Mid-April to Mid-May, while not particularly successful in business terms, was taken as a sign of a reasonable degree of normalcy in Kwangtung. However, a number of fairly minor events which occurred within the colony and which suggested the possibility of a repetition here of the crisis in Macau still gave cause for alarm.

4. In 1966, for the first time in many years, events in Macau had become of prime importance to Hong Kong. On 15 November a scuffle took place on Taipa Island between the Macau police and pro-Communist supporters over the illicit reconstruction of a Communist school. The pro-Communists in Macau took up the matter as a major issue, perhaps largely because of the encouragement given to revolutionary militancy by the Cultural Revolution in China; but perhaps also because they may have genuinely feared that the incident indicated a hardening of the Portuguese policy toward the Communists. A new Governor of Macau arrived on 25 November and soon thereafter was besieged by a series of delegations from various pro-Communist organisations demanding compensation and satisfaction for the incident. The situation rapidly deteriorated and calm was eventually restored only after eight Chinese had been shot dead and well over a hundred injured.

5. There then began a period of nearly two months of negotiations between the Chinese and the Portuguese for a settlement. The local Communist leadership in Macau demanded public apologies by the Governor, dismissal of certain officials, and compensation for those killed and injured and those who had suffered loss; while the CPG, through the Kwangtung Foreign Affairs Bureau, reinforced these demands and added one of their own, the cessation of Kuomintang activities in Macau and the handing over to China of seven KMT agents arrested by the Portuguese in 1963. A policy of conciliation at almost any cost eventually had to be accepted by the Portuguese Government. Towards the end of January

20416-78 8025-13

† CO print of February 1967.

SECRET

RECEIVED IN

ARCHIVES No. 63

31 JUL1967

HWA 13/2

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