LAST

REE

ALA

ALI.

no Carter

RECEIVED IN

REGION N.51

31 JUL 1969

KKC1/10

Requliy

P.A.

Mr. Fingland

NOTES FOR BRIEFING OF UK PARLIAMENTARIANS

VISITING THE FAR EAST

371

The Political Situation

There is little in the Hong Kong situation today to remind us

of the troubles of 1967 when local communists and their supporters

sought to import into the Colony the tactics and activities of the

cultural revolution in China. Occasionally incidents involving

militant communists occur but for the most part the communist

leadership in the Colony, taking its lead from Peking, is once more

concerned to extend its influence by non-violent means and to build

up the economic value of the Colony to China.

2. As has been said repeatedly in Parliament, constitutional

progress towards representative and responsible Government in Hong

Kong is not possible.

It would not be tolerated by China which

regards the Colony as Chinese territory to be recovered in due course.

3. In order to enlarge the participation of the people in the

business of government a review of local government organisation

was instituted some three years ago. There have been several

reports and a fairly lengthy process of sounding public opinion on

this issue. Lord Shepherd recently stated in the House of Lords

that he hoped it would not now be long before firm proposals would

be put forward.

The economic position

4. The events of 1967 had very little effect on Hong Kong's trade,

although imports from China, particularly of foodstuffs, dropped

considerably. Since then there has been an export led boom, with

current exports showing a 25%-27% increase over 1968 figures.

/ In the

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