CONFIDENTIAL

an inadequate knowledge of its problems;

or that Hong Kong's

or that

interacts would weigh lightly if they had to be measured in the balance against the greater interests of our relations with foreign or independent Commonwealth countries; with the heavier responsibilities falling on Ministers, they would not be able to give full consideration to Hong Kong's particular interests. However, frequent visits in the pust eighteen months have done something to dispel these fears and any distrust, und we think that Hong Kong officials are now more ready to make allowances for the short time the mergod office has been operating, for the more frequent staff changes and for the inevitable unfamiliarity with the position in dependent territories of staff who come in fresh from posting:

overseas.

Chinose

Attitude

Cowards

iong Kong

Benefits of

ong con

RELATIONS WITH CHINA

11. The Communist Peoples Government of China (CPG)

14ke

previous Chinese Covernments - regard Hong Kong as Chineso territory, wrested Fron the mainland during a period of weakness and to be recovered in due coursc.

The Chinese

official attitude, pronounced in March 1963 and reaffirmed in 1965, is that ilong Kong is a legacy from unequal treaties in the past and that China's claim will be settled peacefully

But there is at through negotiations when the time is ripe. present no indication that the Chinese intend to press their

claim in the near future.

12. 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.

CONFIDENTIAL

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