IN CONFIDENCE
currency (estimated at between 30% and 40% of the total Chinese
earnings of foreign exchange), mostly earned from foodstuffs, in-
visibles and remittances to relations in China.
It is also, as
China's only deep water port, an important entrepot.
4.
During the Cultural Revolution widespread unrest throughout
China spilled over into the Colony, especially in 1967/68. The
imprisonment of rioters in Hong Kong and the refusal to bend to
Chinese pressure for their release led to the sacking of the British
Mission in Peking. China now displays a much more relaxed and
pragmatic attitude towards Hong Kong and has been notably cooperative
in recent years. There are substantial, and increasing, Chinese
investments in Hong Kong and large numbers of Chinese officials in,
for example, the New China News Agency (NCNA) and the Bank of China
and many trading and other organisations in Hong Kong. The Hong Kong
Government's regular contacts with the Chinese authorities are relaxed
every indication is that the Chinese do not wish to
and easy;
disturb the status quo. The present Chinese Government are adopting
a generally pragmatic approach to the development of the Chinese economy.
The Chinese Government's plans will call for the purchase of much expensive
advanced western equipment and technology in the next few years.
They
could well be paid for, at least in part, from foreign exchange earnings
derived from Hong Kong. China therefore has a vested interest in the Colony's
prosperity in the foreseeable future. Recent statements by Chinese officials
have been aimed at maintaining confidence and thus prosperity, most recently
during the Governor's visit to Peking in the spring of 1979,