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91. Since it is no longer the policy to fight to the end
in Hong Kong and our aim must be to make the best we can of
an orderly transfer of our responsibility for the Colony, it
is essential that the Governor should remain at his post.
In the changed circumstances therefore it would seem that
the time has come to cancel the Dormant Commission.
I.
CONCLUSIONS
British Interests (Paras 3-19)
(a) At the present time It costs us nothing to maintain
present
our position in Hong Kong, apart from Our net annual
(in Hong Kong is
expenditure on defence of the order of £15 million 5 Take in
at the present time).
ship J.
We have a sizeable investment
in the Colony and a considerable trade with it. It
has accumulated large sterling balances which it is
in H.M.G.'s interest to retain, in a substantially
stable form
Considerable
Hong kong
(b) We derive substantial advantages from it as a centre
of communications and for intelligence operations,
and politically it has some value to us in our
relations with our allies, particularly the
Americans.
(c) But the conomy is vulnerable both to commercial
policy changes in the free world and to Chinese
pressures. If it suffered a period of prolonged
economic recession or stagnation, the Colony could
become a major liability. Internal pressures and
outside criticism may build up because constitutional
advance is inhibited. Our position in Hong Kong is
/a point
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