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now proposed creates a new category of British Overseas
Citizens, there is a risk of a damaging loss of confidence
in the Colony, particularly in business circles, as
attention is focussed on the fact that the United Kingdom
is a less certain haven in time of trouble. The Colony's
very existence, moreover, carries with it risks of
clashes with China and local unrest as in 1967. With
the continuance of the decolonisation process for our
other dependent territories it can be expected that
Hong Kong will begin to look progressively more anomalous
and Parliamentary difficulties may well increase unless
many of the deficiencies of life in the Colony can be
rectified.
In addition the further development of
Hong Kong may produce increasing divergence between its
economic interests and our own, though, if as seems likely,
Hong Kong industry moves fairly fast up the technological
scale, the divergence may be lessened.
8.
There are some positive advantages from the
connection with Hong Kong. Inspite of the clash with the
Chinese over Hong Kong in 1967 this arose out of special
circumstances in China at the time rather than from a
clash of policies over Hong Kong. Surprisingly perhaps
Hong Kong is at present an important and positive factor
in China's relations with the U.K. and with the outside
It is also generally admired in Asia and America
world.
as a fine product of British administration in the face Page 23 of 203f great difficulPage23 of 103 is difficult to Ragant of othe