O

Political

SECRET

-2-

DSR 11C

British commitment

Ministerial statements etc

Position of Hong Kong population

Citizenship problems

Leases:

Chinese position

Taiwan

Soviet Union etc

THIS IS A COPY

THE ORIGINAL HAS BEEN RETAINED IN THE DEPARTMENT UNDER SECTION 3(4) OF THE

PUBLIC RECORDS ACT 1958

4.

Hong Kong as a Benefit to the UK

a) Prestige as a well-run colony in a traditionally

turbulent part of the world;

b) adds substance to UK/China relations and gives us

a special position in Peking;

0

d) important trading partner and significant importer

of British capital goods;

e) back door to China;

f) Kai Tak as a bargaining counter in air services

negotiations

g) source of invisible earnings to the UK

h) strategic importance.

)

d), (e) and (g) are not advantages peculiar to the UK but we

probably benefit in these areas from the fact that the

territory is run on British lines.

5. Hong Kong as a Liability to the UK

a) potential major issue of contention with a future

SECRET

/Chinese

89280 Dd 532113 200M 2/79 StS

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