BACKGROUND

CONFIDENTIAL

HONG KONG

Japanese Attitude towards Hong Kong

At the time of the 1967 disturbances in the Colony, the Japanese press expressed some doubts as to whether we could main-

At one tain our position in the face of Chinese hostility. stage, it appeared that the Japanese Foreign Ministry advised

but this advice was Japanese nationals not to visit Hong Kong;

later withdrawn. It is to be hoped that Japanese doubts have

been put at rest now that violence has ceased and the high rate

of economic growth has been resumed. Certainly Japanese

investors in the Colony do not seem to show any lack of

confidence in its future.

Present Situation

2. There has been virtually no violence in Hong Kong since the

cessation of the disturbances there at the end of 1967. It is

clear that the Communist campaign of violence, which completely

failed to achieve its ends, has been replaced by a long term

ideological struggle to win the support of the general public.

The local Communist leadership has undoubtedly received

directives from Peking instructing them to avoid open clashes

with the Hong Kong authorities. There have as yet been no signs

that this communist non-violent long term campaign is achieving

any success; but neither are there any indications that the

CONFIDENTIAL

/Communists

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