NOTHING TO BE WRITTEN IN THIS MARGIN

W(B)L 51-7406

un willing

inhabitants

to Communism (of

whom about turo

million are citizens of the U.K. as

Colmics).

3.

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force) the means of making our

position in the Colony humilitating

and intolerables.

(b) In whatever circumstances we abdicate

our position, it will be impossible

to discharge all our/responsibilities

to the Hong Kong Chinese, or to

remove or protect all British and

Hong Kong owned assets; and we shall

effect

in fet be abandoning some millions

unwilling Zrit:

tizens

British protected persons to

(c) If we were to try to withdraw

(a)

from Hong Kong prematurely, it is

by/no means certain that the Chinese

renunciafion

would accept our per

dauthority

reement of

eentrol. They might attempt to

force us to maintain a "puppet"

British administration under their

controlą.

If it is assumed that the Colony

will be returning to China not

later than 1997 (the termination of

New

the lease of the "bed territories)

there must, as this date approaches,

decline

be a limb in confidence in the

Colony leading to the possibility of

prolong economic recession. This

couldbe quite a significant factor

in the situation by the 1980s, if

not before.

It would be wrong, however, to concentrate

entirely on the negative aspect. The Chinese

are for the present clearly prepared to

accept the continuing existence of the

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/Colony

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