SECRET
DSR 11C
&
show considerable ignorance of or indifference to a number
of basic points which at present contribute to Hong Kong's
success. For example they appear to assume that, simply
by stating that an independent currency will continue, it wil
so happen. They ignore the elements of confidence which are
vital to the value of a currency. In general they fail to
convince Hong Kong people that the free social system and
equality under a predictable system of law would in fact
continue.
5.
So far however we have not reacted publicly to this
Chinese propaganda. In our view it is the talks that count,
not what is said outside them.
6.
In keeping with your advice and the views of
Sir P Cradock and Sir E Youde we do not want to feed points t
the Australians, to put to the Chinese. We hope that this
background may help them in putting across their own point
of view, if they wish.
7.
We are informing Sir A Duff. You will no doubt be
in touch with him about his own contacts with Australian
intelligence officials, in which he will concentrate on our
assessment of the Chinese position.
8.
We agree that the Governor and Sir P Cradock may
speak to the Australian Commissioner and Ambassador
to parow 2 to 6
h
respectively on similar lines, (Hong Kong telno 437).
SECRET UK EYES A