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Forces in Vietnam enjoyed in Hong Kong. We had recently restricted visits
of United States warships to the same number as last year and had suggested
that larger ships should not come. We should not however take any
further action at present since it would be claimed by the Chinese as a propaganda victory but we should keep the matter under review. On our latest information the situation appeared to be quieter. Fim
though restrained action by the Governor and the police had prevented the disturbances spreading. The strike called by the communist Trade Unions had been only partially successful and public transport would
shortly be back to normal. There was no truth in the story being put
out by Peking of heavy Chinese casualties.
Discussion showed that the Committee were in general agreement with
the views of the Commonwealth Secretary. The actions of the Governor and
the police, who had kept control of the situation without having to call upon troops, deserved the highest praise, and in particular it would be appropriate to send a message of congratulation to the police, designed
particularly for publication in Hong Kong. The opportunity should be
taken of the disturbances to press through urgently improvements in
labour legislation, if necessary by use of the official majority in the Executive Council and Legislative Council. The suggestion was made that
Mr. Ernest Thornton, MP, a former Parliamentary Secretary, Ministry of
Labour, accompanied by a leading British trade unionist, might visit
the colony to advise on labour relations, but it was pointed out that a report produced in December 1965 by the Labour Adviser to the Commonwealth Office had covered fully and admirably what should be done and it remained
only to implement its recommendations. The unofficial members of the
Hong Kong Government had up to now resisted these, but their attitude might
well be different in the light of the recent troubles. In any event,
effect must soon be given to the recommendations. In considering the
wider problems posed by Hong Kong, the point was made that while Hong
Kong was of greater economic value to China than to the United Kingdom,
there appeared to be a difference of view within the Chinese Government
about whether the present status of Hong Kong should be maintained. An
element in Peking appeared willing to sacrifice the economic benefits
China derived from Hong Kong to the purity of doctrine of the "cultural
revolution". We could not rely on remaining in Hong Kong on present terms
until our lease of the New Territories lapsed. We should therefore consider what adaptations of the status of Hong Kong might be possible and desirable
after the conclusion of the present conflict in Vietnam. We should also
consider what steps would be necessary if we were forced to evacuate the
Colony.
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