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swim to Hong Kong rather than to cross the land frontier.
In
the past Chinese militia have very occasionally crossed the
border to retrieve illegal immigrants and Chinese junks have been
known to land in isolated parts of the New Territories for this
purpose.
Fishing rights and disputed oyster beds have from time
to time caused friction between Chinese and Hong Kong villages.
6. The usual channel of communication with the Chinese author-
ities on all important matters affecting Hong Kong is through our
Mission in Peking. On matters of purely local interest the
channel is between the Political Adviser's Office and the New
China News Agency (NCNA) in Hong Kong. The Chinese have informally
expressed interest in establishing an official representative in
Hong Kong. This would be difficult for us to accept. It would
give the Chinese enhanced status and increased opportunities to
exert influence in the Colony.
BENEFITS TO CHINA OF EXISTENCE OF HONG KONG
7. The Chinese derive considerable benefits from the Colony,
which provides them with easy access to world markets and serves
as an invaluable base for propaganda 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 China for essential
supplies, especially food. It is of direct and substantial
economic value to China; at least one third of China's foreign
exchange earnings comes via the Colony (just under £350 million
out of about £1000 million in 1970). These earnings play a major
role in financing China's trade deficits with other areas of the
non-Communist world. Balancing against these solid advantages
the presence of a flourishing colonial society on Chinese
territory must be a source of some embarrassment to Peking.
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/Russians
The
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