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acquiosce in the way the Colony is administered.
Current Chinese Policy
3. The Chinese leadership have made determined efforts to
restore order and to reactivate the Chinese economy. At the
same time, they have embarked upon a more active, moderate and
flexible foreign policy. It is evident that the moderate
elements in the leadership (loosely identified as the experienced
administrators round Chou En-Lai and the senior Army Commanders)
play a dominant part in policy making.
4. The gradual evolution of more stable and pragmatic policies
has been reflected in the Chinese attitude towards Hong Kong.
The violent phase of confrontation has been abandoned and the
local Hong Kong communists are under firm instructions from
Peking to act within the law and to direct their activities to
building a broader political base in the Colony. Communist
financial institutions are under instructions to expand Chinese
commercial interests in the Colony. While some local Communists
are probably restive under these restraints, by and large the
Communist leadership in the Colony appears to have accepted the
current linc.
5. The long term prisoners still serving sentences for their
part in the disturbances in 1967 (80 in number at the end of
September) must remain a continuing point of friction in
Sino-Hong Kong relations. (See brief No. 9).
2 -
/Benefits of Hong Kong
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