I.
A.
1.
2.
3.
AL.
5.
56
6.
7.
? 8.
B.
1.
2.
3.
5.
6.
7.
C.
1.
2.
3.
SECRET
TOP SECRET
TIẾNG KONG
HONG KONG'S VALUE TO THE UK
Positive British Interests
Investment.
НКК
HKK 4/1 with flidz)
23/2/26
Maintenance of sterling balances.
centre for communications.
Value vis-à-vis the Americans.
An export market.
Bargaining counter for air service negotiations. Shipping.
British Liabilities
Defence expenditure (shared with Hong Kong).
Competition of Hong Kong in home and overseas markets.
Political sniping at home.
Danger of local unrest or violent eruption in China leading to takeover of Hong Kong and international embarrassment for
the UK.
Inability to control Hong Kong internal policies combined with some degree of answerability for them.
Friction with Hong Kong over specific issues e.g. capital punishment.
Extreme difficulty an: danger of doing anything to change
present status.
British Commitments
Two million British subjects, increasing annually, who, in the event of Chinese takeover, are handed over to Communism. 100-200,000 Chinese to whom we owe a particular debt and who, in the event of Chinese takeover, would have to be settled
elsewhere. UK?
British-owned assets.
Conclusion: ~till appears decisively weighted in favour of the
status quo.
THIS IS A COPY
THE ORIGINAL HAS BEEN RETAINED
IN THE DEPARTMENT UNDER SECTION
3(4) OF THE PUBLIC RECORDS ACT 1958
/II.
207 SBORUT