CONFIDENTIAL

9

Chinese Government. Martin Lee and Szeto Wah were both criticised, not by name but unmistakably, for advocating resisting communism by democracy and calling for the independence of Hong Kong.

24.

Hong Kong has always depended for its survival on the tolerance of its giant neighbour. It would be foolish to test this too far. It is important to ensure that the Chinese Government is given as little excuse as possible to act heavy-handedly in Hong Kong, either now or in the future. It would be very dangerous, for example, if Hong Kong became a centre for an underground movement dedicated to the overthrow of the Chinese Government. Publicity given to activities such as the continuing financial support of student leaders and intellectuals who have escaped from China also risks provoking a hostile response from the PRC.

25.

This message seems now to be understood by an increasing

proportion of the population. But there will inevitably be some groups which, through commitment or ignorance,

will fail to heed it. They will be encouraged by those abroad who see Hong Kong as ideally placed to be a springboard for promoting their own values in China. Such people lack the inherent caution born of growing up in the shadow of China. Herein lies a danger for Hong Kong.

in

26.

One of the most striking features of the past two months has been the part played by the staff of Chinese organisations in Hong Kong. The Communist-controlled Wen Wei Po and Ta Kung Po newspapers strongly supported the students and condemned the military crackdown. The left-wing Federation of Trade Unions took a leading part the mass demonstrations in Hong Kong. Many individuals in

these organisations, the Bank of China group and the NCNA itself behaved publicly in ways likely to put themselves, or their future careers, at risk. This has gained them considerable respect among the community as a whole: indeed in some cases it may have been done precisely for this purpose. Recently the Chinese authorities have taken steps to reassert their control over these organisations, most visibly by removing the editor of the Wen Wei Po. But the influence that they can wield in the community through their organisations based in Hong Kong has undoubtedly been

weakened.

What We Need To Do Now

27. Hong Kong has suffered a severe shock, but not

yet a fatal one. We have always known that the road to

CONFIDENTIAL

/1997 would

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