CONFIDENTIAL
Relations with China
There has been a slight improvement in relations in recent
months. These are still bedevilled by the aftermath of the 1967
iisturbances. Mr. Grey, the Reuters correspondent in Peking, has
been detained there since July 1967 in retaliation for the imprison-
ment of certain communist newspaper workers in Hong Kong who were
convicted of offences arising out of the disturbances. There are
5
still 250-300 other communist prisoners convicted of offences during
1967. There will probably continue to be obstacles to better
relations for some time to come. But by the care the Chinese have
taken to prevent incidents on the frontier and their decision to
return the yachtsmen who strayed into Chinese waters they have shown
a clear disposition to solve local problems and avoid points of
friction.
Tenure
Hong Kong Island and the tip of Kowloon peninsula immediɛ' ǝly
opposite it are held in perpetuity. The New Territories are held
on a 99-year lease which expires in 1997. It is generally accepted
that Hong Kong and Kowloon would not be viable without the
New Territories.
It is unlikely that the Chinese would be willing
to allow us to stay in Hong Kong after the lease expires.
present it would be quite impossible to negotiate withdrawal from
the Colony on any reasonable terms. It would be advisable to
avoid discussion of the long term future of Hong Kong.
At
If necessary,
we should state that in our view it is not the Chinese intention
to take over Hong Kong by force and that we intend to remain there.
We should not say anything that could be taken to imply that we were contemplating withdrawal or negotiations with the Chinese about
the future of the Colony.
CONFIDENTIAL
/Defence ...