CONFIDENTIAL
substantial numbers of communists convicted for offences in 1967
remain in prison, further progress is likely to be slow.
Nevertheless the Chinese have shown themselves ready to respond on
day-to-day problems (e.g. the return of the yachtsmen from Hong
Kong who strayed into Chinese waters).
Steps are being taken to ensure that neither the strength
nor the effectiveness of the Hong Kong garrison will be affected
when the withdrawal of british military elements from Singapore
End Malaysia takes place in 1971.
The New Territories, without which Hong Kong and Kowloon are
not thought to be viable, are held on a 99-year lease which expires
in 1997. The Chinese regard the entire Colony as part of China
and can be expected to react strongly against any move towards
independence. Normal constitutional progress towards any form of
self-government for Hong Kong is therefore impossible. The
Government are, however, considering how in the sphere of local
government ways can be found of associating the people of the
Colony more closely with the conduct of their own affairs.
CONFIDENTIAL