0003160 LF. 316

F.

SECRET

File No: SCR 4/3571/62 III

SINC-BRITISH POLICY

Notes on discussions at Government House at 10.30 . iîì• on Wednesday, 6th November, 1968 and 10.00 a.m. on

Saturday, 9th November, 1968

41€

Present:

His Excellency the acting Governor

Mr. James Kurray (Hcad of the Fur Eastern Department

of the F.C.q.)

Mr. Fercy Cradock (Charge d'affaires, acting capacity,

Peking)

Mr. G.C. Hamilton (Acting Colonial Secretary)

Mr. A.F. Maddocks (Political adviser)

General Review

1.

Mr. Cradock reviewed the situation as seen from Peking. Violence in 1967 had posed a real threat to Hong Kong. It had failed and the communists nad received a severe public set-back.

2.

We were now in a different phase of relations, one in which we would have to clear away the debris of "confrontation". This called for a different approach on our side. The Chinese for their part apparently now wished to return to "normal" (pre- 1967) relations. It was in Hong Kong's interests to help them to close the book. Hong Kong could best do this by:-

3.

(&)

(b)

avoiding provocative action (within the context of maintaining order), especially in respect of education and the Fress, on which subjects China was particularly sensitive;

removing mejor obstacles - in particular the problems posed by prisoners and deteinces.

This should result in better Sino-British rel:tions, whica would be beneficial to Hong Kong and would also assist the Britisa Mission in Feking and British subjects detained in China.

4.

If the book were not closed, tacre would be constant irritants and troubles in Hong Kong, ith exploitation of all incidents.

5.

detente.

6.

Vigorous action was therefore required to assist the

His Excellency did not fully accept that the communists wished to close the book. They had stopped the violent phase because it was not achieving communist objectives and was harming them (e.g. economically). But they were actively pursuing their United Front activities and retaining their objective of dominating the Colony, but ove. a longer period and by overtly lawful means. Hong Kong nad given various concessions (e.g. release of some detainees, tolerance of Fress). The Communists had made some concessions (e.s. on visas) but had given no clear evidence of a wish for "normal" relations.

SECRET

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