CONFIDENTIAL

allow him to do so. On the other hand, if he adopted a

high posture he would amount to an alternative governor

and sooner or later a trial of strength would occur.

Incidentally he would be a sitting duck for any agent

provocateur with a gun or bomb.

13. So far the Chinese Government has never pressed for

an official representative though they have made

occasional references to the possibility. The last one,

by Chou En-lai, in March, was typical. He did not ask

for an official representative in Hong Kong but in an

exchange about Taiwan said it was illogical for us to

maintain the Consulate in Tamsui when the Chinese did

not have a Representative in Hong Kong. But the local

Communists in Hong Kong have been encouraged to claim

in private that representation is now a major Chinese

objective.

14. For my part, I think it arguable that Peking is

fully aware of the situation described in paragraph 8,

and will not push a demand for Representation to the

limit unless and until a decision has been taken gradually

to change the status of the Colony. In this case official

representation would be a logical first step.

15. So I think that so long as we see no advantage in negotiating about the future of the Colony, we must stick

to the present system of contacts and communications and

5. CONFIDENTIAL

/stand

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