NOTHING TO BE WRITTEN IN THIS MARGIN

White paper.

BACKGROUND

CONFIDENTIAL

CHINESE POLICY TOWARDS HONG KONG

1. The Chinese regard Hong Kong (both the ceded

and leased areas) as Chinese territory, which will

must be

eventually return to China. They a

#

aware that

the Colony cannot be defended for any significant

length of time against a determined Chinese attack or against large Communist-inspired disturbances if

reinforced by substantial military intervention

from China. In any case the Chinese have at

their disposal ample means of making difficulties

for the Hong Kong Government. But for the time

being the Chinese are prepared to accept the

existence of the Colony in its present form, since

it brings them considerable economic and political

advantages.

2.

Chou En-lai told Mr Malcolm MacDonald on

1 November 1971 that "Hong Kong is a place which

will be returned to China, but the Chinese Government

had not raised this and it would not be raised for

a long time. The lease of Kowloon (sic) expires

in 1997". This is the first time a Chinese leader

has categorically linked their attitude to Hong

Kong to the expiry of the New Territories' lease.

We have treated Chou's remarks as confidential but

the Chinese are obviously anxious to reassure

Hong Kong residents publicly about the future.

For example an article in "Newsweek" of 13 December

1971 said:

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CONFIDENTIAL

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