CONFIDENTIAL
BACKGROUND NOTES
RELATIONS WITH CHINA
4. Hong Kong/Ching Relations
NO. 6
The Communist People's Government of China (like previous Chinese
Governments) regard Hong Kong as Chinese territory, wrested from the
mainland during a period of weakness and to be recovered in due course.
The Chinese official attitude, pronounced in March 1963, and re-affirnod in
1965, is that Hong Kong and Macao are legacies from unequal treaties in
the past and that the Chinese clain will be settled peacefully through
negotiation when the time is ripe. Because they regard the Colony as
Chinese territory to be recovered, the C.P.G. have dropped strong informal
hints from time to time that any advancement of Hong Kong along normal
colonial lines towards self-government and independence could not be
tolerated. Moreover, the C.P.G. have let it be known that they would
deprecate discussion of Hong Kong in the United Nations Committee of 24
and have reacted to Russian taunts that China tolerates colonies on its
doorstop by making it clear that they regard the recovery of Hong Kong and
Macao as a matter for the Chinese Government alone.
2.
China has very strong economic incentives to leave undisturbed the
status quo in Hong Kong. China corns an annual surplus of sone £200 million
on invisible and visible trade accounts through Hong Kong (a very substantial
part of its foreign exchange carnings), and they are making very substantial
efforts to increase these carnings. Principal sources are food cxports to
Hong Kong and remittances through Hong Kong from overseas Chinese. Direct
exports from China through Hong Kong are no longer on a large scale, but
China is increasingly using the facilities offered by Hong Kong export
houses and banks for its trade with the West.
CONFIDENTIAL
130