W(B)L 51-7406
NOTHING TO BE WRITTEN IN THIS MARGIN
CONFIDENTIAL
II Political Factors
9. Hong Kong is of strategic value not only
to the United Kingdom but also to the United
States and our allies. The population is
98 per cent Chinese and there is a strong
particularly
Communist element in the trade unions. There
are a substantial number of Communist news-
all but on papers, chiefly Chinese language papers, and
papers,
the Communists also run a number of schools
where the curricula are heavily slanted
towards Communist indoctrination.
There was
a dangerous period of social unrest and
rioting in 1967 caused by Communist agitation
but this has been followed by a period of
years
relative calm since the local Hong Kong
Then been
Communists appear to be under instructions
from Peking to keep within the law. An
economic crisis resulting in heavy un-
employment or a fall in the standard of
living could lead to further social unrest
which could be exploited by the local
Communists. But China evidently considers
the continuance of the Colony in its present
form as in her interest, since China derives
considerable economic and strategic advantage
from Hong Kong. Local opinion regards the
existence of British troops stationed in
Hong Kong as an assurance of our intention
to maintain our position in the Colony.
principal role of the Garrison is to assist
in maintaining internal security and local
confidence: if either were to slip the
Chinese Peoples Government would be tempted
to exploit the situation, and our position
could rapidly become untenable. Relations
between Her Majesty's Government and the
Hong Kong Government have been at a low ebb
The