CONFIDENTIAL
cnt Forg's
olicy towards hin
cmmuni cos
i
activities. With the rapidly changing situation in
South-Eant Asia, the value of the Colony as a listening poců
and staging point will increase. Hong Kong also depends
heavily on Chim for essential supplies, especially food and
so is of direct economic value to China; botween a third and
a half of China's foreign exchange earnings comes via the
Colony. These cornings play a major role in financing China's
trade deficits with other areasqf the non-communist world.
13. Hong Kong's policy towards China has been one of
"fimhoss without provocation"; in particular, the
Government is careful not to cause offence, e.ɛ. by avoiding
official contacts with the Nationalist authorities in Formosa,
and by ensuring us far as possible that the latter do not unc
Hong Kong as a base for their subversive and intelligence
activities against the mainland.
}
COMMUNIST CONFROITATION
!
anent Policy 14. Since the end of the communist inspired disturbancos in
local
1967, the local communists have avoided violence in their
programme of confrontation with the authorities. Thoy arc
under firm instructions from Peking to act within the law and
to direct their activities to building a broader political base in the Colony. They have kept up their criticion of
the authorities using whatever meána may have come to hand
and there is every indication that they will continue · indefinitely in their efforts to undermine the authority of the Government and to win over the general public to their
own side.
CONFIDENTIAL
/ 25.