4.

a place for investments, a university of science and

technology and a construction experience exchange station. The Chinese can make use of Hong Kong under prevailing

circumstances to serve the modernization of their

agriculture, industry, national defence and science and

technology •

In order to advance their work both at home and

abroad, the Chinese need to develop a united front encompassing the compatriots in Hong Kong and Macau and overseas Chinese abroad. Hua Kuo-feng mentioned this in his political report to the 11th CCP Congress and also in his report on the work of the government to the 5th NPC. Finally, this was also written into the new constitution (the preambles). This was something

not done before, indicating the great determination of the Chinese to rally the support of the compatriots in Hong Kong

and Macau and overseas Chinese.

Recently, Sino-US relations have developed and the

prospects of normalization are seen by all. It is conceivable

that the Chinese will launch a sharp political offensive against Taiwan before and after the establishment of Sino-US diplomatic relations. Having thousands of ties with Taiwan,

Hong Kong naturally holds a very important position in such

an offensive.

At present, Soviet expansionist activities are being intensified with each passing day in various regions of the

world. The Chinese have sharply reacted to this. Τη

diplomacy, they have recently shifted from the defensive to the offensive, with Chi Peng-fei, Keng Piao, Huang lua and Ho Ying visiting the five continents to strengthen relations

with the third and second world nations. This is a new move worthy of attention. In Asia, the Soviet Union, while extending its influence everywhere, is stepping up its efforts to form a ring around China. The shadow of the bear can be seen in Hong Kong. This situation will necessarily spur the Chinese to adopt a serious attitude toward their work in Hong

/contd...

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