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commitment to Hong Kong and thereby lead to a loss of confidence.

(b) would be particularly difficult unless it were linked with

firm and public

GA

Chinese assurances that the status quo would

continue for a very long time.

INTERNAL POLICY

10. It has become apparent over the years that the Chinese expect the British and Hong Kong Governments to act in accordance with certain unwritten ground rules in administering Hong Kong.

more important of these might be summarised as follows:

(a)

(b)

There can be no question of independence for Hong Kong. Changes which could be interpreted

by the Chinese Government or by the local

population as moves in that direction are

ruled out.

The policies of the Hong Kong Government must be consistent with China's international interests.

In particular:

(i) The activities of the Chinese Nationalists

and their supporters must be strictly

(ii)

controlled.

Official representatives

of the Nationalist régime must be kept out of the territory, and Nationalist intelligence and subversive organisations must be prevented from conducting

operations directed against the mainland

from or through Hong Kong (trading, civil aviation and private links are however acceptable).

Similarly (and in present circumstances

The

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