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عندله

in the Chinese leadership; but there is always the

danger that extremist elements may gain the ascendancy,

who would be prepared to sacrifice the economic benefits.

of nationt sensor

for doctrinal purity. Waslogical and nati vont to

Chinese Attitude and Intentions

il man Yan

a v long

time to

x

(g) The Chinese Government re

ament regards the whole of Hong Kong

(both ceded and leased areas) as Chinese territory to

be recovered (although they are on record as saying that

they will negotiate its return); and even if they allowed

the lease of the New Territories to run its full term,

we could not expect to re-negotiate it in 1997.

(h) At the moment they are prepared to accept the continuing

existence of the Colony because it brings them economic

and political advantages. The campaign of violence has

been abandoned for the present and they apparently

vring the motions of fomy tam stingh

the motims I

buny Pony Ting

The Gour to a

рольни of Subscriem

recognise that a Macao-type situation will take time

to achieve. Their immediate aims are to maximise their

commercial interests in the Colony and to concentrate

on broadening the base of their support among the people.

In certain circumstances, however, this policy might

quickly change for one of reducing the Colony to a

position of subservience or even of taking it over.

(i) we have virtually no means of bringing pressure to

thi

to chaing what was consell cation they decide on. bear upon China the should nevertheless examine the

Leef wundert reve scope for withdrawing services and facilities in the

11

event of another confrontation.

4

mon to

(j) It is unlikely that the Chinese would take Hong Kong

by direct military attack; it would be more in keeping

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