I

SECRE

BRIEF NO. 12

VIST OF MINISTER OF STATE FOR COMLORINEALTH AFTAIRS

TO HONG KONG

OCTOBER 1967

Relations with China

Notos on Hong Kong's rolations with China and H.M.G's present policy towards China are set out in Background Notes No.6.

2. Clearly, the best we can hope for from Hong Kong's point of view is a return to the situation in which China is prepared to tolerate cur continued rule thoro for the economic bonofits this brings and exercises its influence to restrain the local Communists from taking action likoly to disturb our control of the Colony. This is the position which

publicly and behind the scanes we must sook to recreate. As the Foreign

Secretary said in Parliamont on 20th July, "we hope that our relations with China may roturn to their previous footing, to the mutual benefit of

China, ourselves and Hong Kong".

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3. Both wo and the Governor havo constantly had in mind the possibility that a gesturo on our part might provide the kind of encouragament and

face-saving solution that would persuade the flagging local Communist leaders (with the agreement of China) to call off their prosent campaign.

The idea of an amesty for convicted prisoners has boon raised and will bo discussed with the Governor during the Minister's visit (000 exchange of telegrams attachod). Thore aro two principal difficultios. Firstly, the Chinese may rogard our initiative as a sign of voalmoss and prese domands upon us. Secondly, unloss it can bo agrood that those released will be recoivod back into China on deportation from Hong Kong, thoro is

danger for internal socurity in the premature release of known troublo-

makore.

4. Timing of a gesture will be all-important. It would hardly bo appropriate at a time when the Hong Kong authorities are still finding it

necessary to harass Communist organisations by police raids or when the local Communists are continuing with militant activities and oxtromoly

hostile propaganda. A further consideration at this prosent time is the

unfortunate position of our Mission in Poking; a unilateral gosture would bo

in the naturo of a givo-away whon wo may need all the bargaining counters we can lay our hands on in ordor to extricate our women and children from Pelding.

Hong Kong Department,

October, 1967.

SECREET

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