CONFIDENTIAL

3

brings out the political connexion between China, Macau and Hong Kong as if this was not perfectly clear to most people here already. The statement that Hong Kong is more valuable to Britain than to China is interesting (and almost shameless); but then it would be difficult, if not impossible, for the Chinese to admit that the foreign exchange earned in and through Hong Kong was a matter of importance to them.

T

(A E Donald)

CC

P L O'Keeffe Esq

Hong Kong & Indian Ocean Dept

F CO

N M Fenn Esq

FEKING

RC Samuel Esq

WASHINGTON

CONFIDENTIAL

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