SECKE:
principle and will continue to do so. We see KMT activities here as a diminishing political problem which would only be exacerbated by public statements from us. Similarly, with the Soviet Union, we have made it clear that we will keep a close watch on their activities. We allow some visits by Soviet or East European nationals,
but only if these are likely to contribute directly to the
health of the Hong Kong economy or, occasionally, for
innocuous artistic performances. We are willing to co- operate with the Chinese in dealing with any Soviet attempts to carry out espionage against China based on Hong Kong. We do not, however, wish to impose a complete ban on the Soviet
Union and its allies. This would not do anything further
to deal with the real problem. It would also damage Hong Kong's reputation and effectiveness as a free port.
SECRET
7.