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The Committee considered a memorandum by the Secretary of State for Commonwealth Affairs (OPD(67) 39) on the situation in Hong Kong.
THE COMMONWEALTH SECRETARY said that, arising out of labour troubles, major disturbances had occurred in Hong Kong linked with hostile
demonstrations in Shanghai and Peking and with the expulsion of our representative in Shanghai. It appeared that recent development in China's "cultural revolution" had resulted in a loosening of control by mainland
China of the communists in Hong Kong. It was not known how far the
Government of the People's Republic of China, to whom our presence in
Hong Kong brought considerable economic benefits, had now decided to go
in bringing pressure on us. They might be seeking a propaganda victory as the price for calling off the disturbances, or trying to force us to
accept a position of subservience on the lines which the Portuguese had had to accept in Macao, or they might even have decided to drive us out of Hong Kong completely. There were now indications, however, that the
mainland Chinese were seeking to restrain the Communists in Hong Kong.
We could not resist a determined attempt to force us out altogether, nor
could we tolerate a situation similar to that in Macao. Our resistance
to the latter might compel China to resort to driving us out.
A study
of the implications of a sudden withdrawal from Hong Kong should now be
set in hand. Our immediate responsibility, however, was to maintain law
and order and keep up morale and confidence so that Hong Kong's economy
could continue to flourish. This would require firm action but we should
avoid as far as possible action which China would regard as provocative.
The commando carrier, H.M.S. Bulwark, was being sent to Hong Kong,
and the Governor had already been authorised to neutralise several of the
buildings from which the Chinese campaign against us was being conducted
by loudspeakers. The Governor should now be given authority to arrest and, if possible deport a few (limited to two or three in the first instance),
of the known leaders of the present campaign. The Governor should also be
given a general authority to take emergency powers to close down the printing
press of the principal communist newspaper in Hong Kong, subject to consulting him (the Commonwealth Secretary) on each individual case. We
should also press the Governor to introduce extensive and long overdue
improvements in the labour legislation including shortening hours of work
of women and young persons. In the background of our difficulties with
China lay their irritation at the facilities which the United States
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