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CONFIDENTIAL
Chinese attitude towards
Hong Kong
Benefits of Hong Kong
Hong Kong's
Policy towards China
inevitable unfamiliarity with the position in dependent
territories of staff who come in fresh from posting overseas.
RELATIONS WITH CHIN A
12. The Communist Peoples Government of China (CPG) - like
previous Chinese Governments regard Hong Kong as Chinese
territory, wreated from the mainland during a period of
weakness and to be recovered in due course. The Chinese
official attitude, pronounced in March 1963 and reaffirmed
in 1965, is that Hong Kong is a legacy from unequal treaties
in the past and that China's claim will be settled peacefully
through negotiations when the time is ripe. But there is
at present no indication that the Chinese intend to
press their claim in the near future.
13. The Chinese derive considerable benefits from the
Colony, which provides them with easy access to world markets
and serves as an invaluable base for travel and intelligence
activities. With the rapidly changing situation in
South-East Asia, the value of the Colony as a listening
post and staging point will increase. Hong Kong also
depends heavily on Chiae for essential supplies, especially
food and so is of direct economic value to China; between
a third and a half of China's foreign exchange earnings
comes via the Colony. These earnings play a major role in
financing China's trade deficits with other areas of the
non-communist world.
14.
Hong Kong's policy towards China has been one of "firmness without provocation"; in particular, the
Government is careful not to cause offence, e.g. by avoiding
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CONFIDENTIAL