of

stage to forecast what the likely attitude of Hong Kong will be to future Chinese Governments. They have told us privately they are satisfied with the

Istatus cuo and that the problem is one for a future generation to solve.

VAS LAUN

solve.

The logic of the present Chinese Government's position seems to point to

the future of all three as being indistinguishable. Beyond that point

one cannot go at this stage. It is too far in the future for us to

speculate on what might be the position.

6. Tronty years is not a very long time, and at the moment there is

already a very heavy investment in the new territories in the building of

the satellite toms, and presumably there will be additional military

expenditure in the new territories to replace existing assets in Hong Kong

itself. Is it fair to say that the policy decisions affecting these investment

decisions are being made on the assumption that there will be a continuing

British presence in Hong Kong, irespective of any date I may refer to?

A. I think these decisions are taken because there is faith in the future

of liong Kong, and the only policy we can now adopt is one of regarding the

future of Hong Kong as a viable entity. More than that one cannot say.

The future of virtually anywhere in 20years' time is difficult enough to

forecast. The decisions are taken in the interests of the people of Hung Kons(end with confidence in the future of Hong Kons, but that is not to

say that we can forecast the likely attitude of the Chinese Covements in

the future. There is no other viable policy.

"

IN ROPER: First of all, in the light of the statement made by the

Chinese delegate at the United Nations, is it sensible that we go on using

the phrase 'colonial secretary' or the 'overmont or 'colonial gove:mnent'

and so on? A. There has been a tendency to drop the term 'colony' end

'colonial' in reference to Hong Kong. Normal public references to Hong Kong

eze just 'Kong Hong'. I think the 'colonial secrctmy' is reclly a hongovor

from the rest.

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