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not recognised by Them in Peking, unrespective of the

nicome più Vietnam and

any consequences.

This may

have

fox American

"military deployment")

in the area

difficult and painful.

and indeed moral problem.

can be beste

Fough

This is a very difficult practical,

Further study will be necessary

and this also is being put in hand in Hong Kong.

F. AMERICAN INVOLVEMENT

51. The Americans make great use of Hong Kong. It is

convenient as a recreational centre for their surface and

air forces engaged in the Viet-Nam war (and was so used by

their naval forces long before their involvement in Vietnam)

although it is not indispensable for this purpose since the

Philippines, Formosa, Thailand and Australia can and do serve

the same purpose. The Americans also use Hong Kong as their

major centre for "China watching" In this role Hong Kong is

This latterase

unique. These two considerations, together with the United

States' policy of containing China, makes it certain that the

Americans would wish us to stay in Hong Kong at least as long,

as there is a Communist government, Peking.

The

in the long

52. One of the factors which prevents Chinese military

involvement in any neighbouring country (i.e. India or Vietnam)

is the fear of American nuclear retaliation against China.

Chinese leadership appear to be genuinely convinced that the fun the Americans will become involved in a war with Americans wish to attack China and, despite their propaganda

about nuclear weapons being "paper tigers", there is little

doubt that they take seriously the threat of a massive nuclear

attack. Although this fear does not prevent China from pursuing

policies of hostility towards the United States it does seem

to prevent them from pushing these policies to the point of

direct confrontation. It is therefore arguable that the

Chinese could be deterred from taking action against Hong Kong

by the threat of American retaliation against China.

It is,

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/however,

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