19

NOTHING TO BE WRITTEN IN THIS MARGIN

SECRET

OUTWARD TELEGRAM

FROM THE COMMONWEALTH OFFICE (The Secretary of State)

TO HONG KONG (Sir D. Trench)

Cypher

Sent 19 May 1967.

2001 Z

IMMEDIATE SECRET

Drafy Bak

No.967

Addressed to Governor Hong Kong Repeated IMMEDIATE to Peking

11

should

196

10

th

11

POLAD Singapore Washington

ROUTINE

Following from Garner.

Your telegram No.641

Kowloon Disturbances.

see 15. ANNEY

I have discussed the latest situation and your telegram with
Commonwealth Secretary. May I say at once how concerned we all are that
attack now seems to be concentrating en you, and how very much we admire
the calm spirit in which you are meeting it (your telegram No-650).

(90)

2. We are most grateful for your thoughts on the longer term problems
and entirely agree that they will need very serious thought.

3. We all agree that all these matters both long term and immediate need
personal discussion. Of course you cannot leave your post at present and
we recognise the difficulties in the way of a Ministerial visit. But we
are anxious to arrange talks with you as soon as possible and it has
been decided that Galsworthy, Carter and Bolland (F.0,) should fly out
tomorrow (20 May) by BOAC flight BA.922 arriving Hong Kong 16.00 hours
on Sunday. We hope this will be convenient to you and they will give you
all the help they can.

4. We are sure you will agree with us that it would be desirable to
avoid publicity for this official visit, if at all possible. We hope
means can be found of avoiding the Press at airport.

(Passed to D. S: A:O. for Peking, POLAD Singapore and

Washington)

Distribution H.K. W.I.D. 'C'

THE

-

InG.D.

''Tr̿6, EXTERNAL DISTRIBUTION

DEPARTMENTAL DISTRIBUTION

Copies le sent to: Cabinet Office - D.I.O, J.I.R.

als

Foreign Office

M

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Mr. de la Mare

Mr. Bolland

Mr. Wilson

Mr. Denson

Mr. Foggen

вівто

P.S. to Prime Minister

SECRET

Sab.

Registry No.

DEPARTMENT

Far Eastern

SECURITY CLASSIFICATION

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Confidencial

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NIPS

PRIORITY MARKINGS

(Date)...

Plast fimmediat Priority

}"

* Date and time (G.M.T.) telegram should

reach addressee(s)

Ted. 129742

920702 Tedi

97

Despatched Hong Kong blades

RECEIVED

1.

2 0 MAY 1967

C

1

Fo E.O

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Draft Telegram to:- Hong Kong

No.

(Date)

And to:-

[Security classification]

-if any

[

Privacy marking -if any

J

[Codeword-if any].

Addressed to

Aktiv-----

969.

telegram No.....

969.

And to

*ker-----TrekkerkyLEITETSPACERATASTELLATAPPETTATETE-----------------------SETT

Hong Kong

..(date)

FORMAT PRATAMARAN MELETAKPETE

par beking and Singapore

repeated for information/to

Saving⋅ Repeat to:-

Peking Singapore

Saving to:-

Washington

HK, WID 'e'

891

70

Distribution:-

F.E.D.

Aden Dept.

FO.News Dept.

C.0. D.T.D.

RY 1545 Copies to:- 2215

Saving to...

Washington

Your telegram No. 632 paragraph 3:

Lord Shackleton's speech in Aden

M.I.FT. contain the text of relevant

passages from the broadcast made by Lord Shackleton

on 16 May. Many press reports were/slanted to sugg-

est that the release of detainees was to be in

return for co-operation from opposition parties.

Essential differences between situation in Hong

Kong and Aden are:

2.

(a) Offer in Aden s

(bas Connected with

How far

return to conditions of normality

abolition

including suspension of state of

and release of detainees;

emergency

and

(b) In Aden those concerned are detained

without

without trial under emergency

regulations for suspected terrorism.

This is very different from Hong

tow

Kong were those arrested are hooligan

elements charged under the law with

criminal offences, have been

legally tried or will be in the

immediate future.

3. We shall keep you informed

any

Fouack Front

future

which may

be

developemento which reberent to Hong Kong.

(8430 24,033246 600m 9/66 G.W.B.Ltd. Gp.163

NOTHING TO BE WRITTEN IN THIS MARGIN

CONFIDENTIAL

OUTWARD TELEGRAM

FROM THE COMMONWEALTH OFFICE (The Secretary of State)

TO HONG KONG (Sir D. Trench)

Cypher

Sent 19th May, 1967

201 02

PRIORITY CONFIDENTIAL

No. 969

Addressed to Governor, Hong Kong,

Repeated to Peking

11

POLAD Singapore

"Washington

by Savingram

Your telegram No. 632, paragraph 3. 80

Lord Shackleton's speech in Aden.

My immediately following telegram contains the text of relevant
passages from the broadcast made by Lord Shackleton on 16th May. Many
press reports were wrongly slanted to suggest that the release of
detainees was to be in return for cooperation from opposition parties.

2.

Essential differences between situation in Hong Kong and Aden are:

(a) Offer in Aden was connected with return to

conditions of normality including abolition of state of emergency and
release of detainees;

and

(b) in Aden those concerned are detained

without trial under emergency regulations for suspected terrorism. This
is very different from Hong Kong where those arrested are hooligan
elements charged under the law with criminal offences. They have been
legally tried or will be in the immediate future.

3. We shall keep you informed of any future developments which may be
relevant to Hong Kong.

Distribution:

H.K. W.I.D. 'C' I.G.D.

80

1

10

Copies also sent to:

Foreign Office

- Aden Department

News Department

CONFIDENTIAL

Gd

F.E.D.

PA

97

* Date and time (G.M.T.) telegram should

reach addressee(s)

1920.217.

Hong louiz Holah

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98

2 0 MAY 1967

Registry No.

DEPARTMENT

Far Eastern

SECURITY CLASSIFICATION

→Top Secret

Secret

Confidential

Restricted

Unclassifad

Miimed late Priority

Routine

PRIORITY MARKINGS

(Date)......

}"

Despatched

-------

PRIVACY MARKING

In Confidence

[Sect

"Security classification"

if any

tion]

En Clair.

[

Privacy marking -if any

]

ник

NOTHING TO BE WRITTEN IN THIS MARGIN

U

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Cypher

Draft Telegram to:-

Hong Kong

No.

(Date)

And to:-

970

[Codeword-if any].

Addressed to

telegram No...

And to

LLLLL

Hong Kong HK 380 970.(date)

Sowe

Peking and Singapore

repeated for informationta...

Repeat

Peking Singapore

Saving to:-

Washington

е

A.K, Wife

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Distribution:-

F.E.D.

Aden Dept.

News Dept. C.O. D.T.D.

70

RY 1545 22/51 Copies to:-

Saving to....

Washington

M.I.P.T.

"I would like to issue the strongest appeal

to all parties to come forward and talk. My wish

is that we should be able to fulfill the United

Nations resolutions, for example, those relating

to the state of emergency and the release of

detainees, just as soon as circumstances are favour-

Lable,

able, so that the people of the country may live

in peace once more. But we still have responsibil-

ity and if we are to make this gesture, which would

be an act of faith, we need at least some indication

from those who at present feel they have to use

violence that they will reciprocate.

I should like to say again that if represent-

atives of political groups are prepared to come

/forward

(9430 4333246 600m 9/66 G.W.B.Ltd. Gp.863

forward, we shall wholeheartedly welcome this co-

operation in our efforts to bring South Arabia to peaceful and
prosperous independence."

NOTHING TO BE Written in THIS MARGIN

}

RESTRICTED

OUTWARD TELEGRAM

FROM THE COMMONWEALTH OFFICE (The Secretary of State)

TO HONG KONG (Sir D. Trench)

98

Cypher

VILA 1/17

Sent 19th May, 1967

2021 Z

PRIORITY RESTRICTED 110 970

Addressed to Governor Hong Kong, Repeated to Peking

POLAD Singapore Washington

by Savingram

My immediately preceding telegram.

"I would like to issue the strongest appeal to all parties to come
forward and talk. My wish is that we should be able to fulfil the United
Nations resolutions, for example, those relating to the state of
emergency and the release of detainees, just as soon as circumstances
are favourable, so that the people of the country may live in peace once
more. But we still have responsibility and if we are to make this
gesture, which would be an act of faith, we need at least some
indication from those who at present feel they have to use violence that
they will reciprocate.

I should like to say again that if repres- entatives of political groups
are prepared to come forward, we shall wholeheartedly welcome this
cooper- ation in our efforts to bring South Arabia to peaceful and
prosperous independence.

Distribution:

H.K. W.I.D. 'C' I.G.D.

Copies also sent to: Foreign Office

**

F.E.D.

Aden Department News Department

RESTRICTED

LAST

92

EXPORT

COITS*IN]WIX

EXPORT CREDITS GUARANTEE DEPARTMENT P.O. BOX NO. 272, BARRINGTON HOUSE,
59-67 GRESHAM STREET, LONDON EC2

Telephone: MONarch 6699 Telex: 21821

3

Your reference

CONFIDENTIAL

Our reference

O.D.35

19th May, 1967.

991

1

Dear Carter,

Colyn HUD 21/5

You will know that we in E.C.G.D. are being asked to back Costain's
negotiations with the Hong Kong Tunnel Company to secure the order for
constructing the tunnel. This will be worth some £10m., the work will
take some 3 years and there will be a further 7 years credit for
repayment. We have, accordingly, to assess the acceptability of assuming
up to a £10m. risk on Hong Kong now, with our risk continuing et a
variable figure for some 10 years ahead.

We are fast reaching the stage where Costains ere pressing to
complete negotia- tions and will require a firm decision from us. In
order to give them this we for our part need to take account of the new
situation brought about by the current political disturbances.

I should explain that we have hitherto regarded Hong Kong as a
first-class 'A' risk along with other British colonies not verging on a
change of political status. We have assumed that mainland China's
economic self-interest will make her content to let the existing status
of the Colony continue until the Crown lease expires. The current
situation makes us now question whether this assumption is firm enough
for us to accept a 10 year risk as a reasonable commercial proposition
in present circumstances.

We in E.C.G.D. have not seen any cables from Hong Kong or Peking about
these developments. I should like in the first place to put our interest
on record and ask that we be sent copies of current material. This
apart, I should appreciate it if you and the Foreign Office could let us
have an urgent assessment of these developments.

We are, of course, concerned to know whether they are believed to
indicate any basic change of attitude towards the Colony's status by the
mainland authorities. And if they are not, to judge the likelihood of
the situation getting out of hand to an extent which may force the
mainland authorities into an active militancy.

W. S. Carter, Esq., C.V.O.,

Commonwealth Office,

S.W.1.

LAST

C'E

BRANCH OFFICES; BELFAST BIRMINGHAM ORAdrodd bristol CARTITE 107 LONDON
(CITY, SOUTH & WEST END) MANCHLÉTOR NUWÉASTLE NOTE:

поро

GLASGOW 1EEDS LIVERPOOL. SHEFFIELD: & few vonk

/I

W. S. Certer, Esq., C.V.O., Commonwealth Office.

Our Ref: C.D.35

19th May, 1967.

-

I appreciate that it is difficult to judge all this at the moment but we
should be grateful for your views. If the situation should quieten down
soon we should in any case need to take cognisence of the likelihood of
recurrences over theeers ahead

and with this sort of perspective in mind it seems to us in any case
necessary for us to take a view now as to likely Chinese ettitudes
towards external private liabilities (as these Tunnel Company
liabilities would be) in the event of a take-over by force. We should
accordingly be grateful if the Foreign Office could let us have comments
on this particular point in the light of experience when the Communist
regime took over on the mainland. And we should of course, be grateful
to be kept in the picture on any longer-term Assessments that may be
made of the political or economic consequences for Hong Kong of these
events.

I am copying this to the Treasury who have themselves expressed to us
some concern about the outlook, and to other Departments who will no
doubt be interested and need to be consulted if we should be forced to
the view, when the time comes for a decision on the case, that the
prospects are so uncertain as to make the risk commercially
unacceptable. In that event we should require an urgent decision from
the Export Guarantees Committee about its desirability in the national
interest

Copies go to Bollend and Mason (F.O.), S.H. Wright and Lucas
(Treasury), Spiers (Bank of England), R.L. Davies (Board of Trede) and
Cotterill here.

Yours sincerely,

(C. P. RAWLINGS)

CONFIDENTIAL

MHHall, DTD 100

This Document is the Properly of Her Britannic Majesty's Government.

PMV (W) (67) 16

19 May, 1967

Körlachanes

کرتے

Copy No. 20

1.

VISIT OF THE PRIME MINISTER TO

CANADA AND WASHINGTON MAY/JUNE

1967

CHINA AND HONG KONG

Brief by the Foreign Office

Talking Points

All the available information suggests that the

incidents in Hong Kong on 6 May and later were not instigated from
mainland China. They may have occurred,

however, partly because control over pro-communist

organisations in Hong Kong from the mainland has recently slackened and
local leaders and the rank and file have taken the initiative in acting
in a militant fashion to keep up with the present extreme atmosphere of
the Cultural Revolution

in China.

2. The Chinese Government came out in full support of

their sympathizers. Their statement of 15 May was the strongest and most
abusive about Hong Kong for some years. There is no hard intelligence to
indicate that the Chinese Government has changed its basic policy of
allowing British

rule in the Colony to continue. There are, however, strong pressures
within China tending towards intransigence and though China would stand
to lose a great deal of foreign exchange (£200 million annually) if they
push matters to such an extent that business confidence in Hong Kong is
damaged, it may be difficult for those elements favouring caution to
secure a hearing in the present overheated atmosphere resulting from the
Cultural Revolution.

CONFIDENTIAL

13.

CONFIDENTIAL

3.

Myne.

It would clearly be impossible for the Hong Kong Government to accede to
the demands of local pro-communists without a complete abdication of
authority, which would put them in the same position as the Portuguese
authorities in

As it becomes clear that the demands are not being met, there may
well be further and more widespread outbreaks of violence which could
not be repressed without bloodshed. If this does occur there will be a
grave risk that the Chinese authorities would react by bringing other
pressures

to bear.

4.

Hong Kong has an efficient police force and there are over 7,000
fighting troops, British and Gurkhas, who could be used for the
maintenance of law and order if necessary. Depending on the attitude of
the local communists and the Chinese Government it might be possible by
sidestepping Chinese demands and by firm but unprovocative action to
ride out the crisis without any major change in the status quo.
Nevertheless, there remains a grave danger that the Chinese

Government and the local pro-communists will force the Hong Kong
Government to a full-scale confrontation.

CONFIDENTIAL

CONFIDENTIAL

Background Note

The disturbances in Hong Kong which began on 6 May originated from a
series of industrial disputes. After demonstrations and obstructive
picketing had led to intervention by tix police and arrost the union
concerned

put forward demands for the immediate release of workers

arrested, compensation and punishment of the police invol-

ved and no interference by the police in labour disputes

in future. The pro-communist press endorsed these demands

and accused the police of unnecessary brutality when they

had in fast behaved with exemplary moderation.

The

2. On 15 May the Chinese Ministry of Foreign Affairs

issued a statement castigating the Hong Kong authorities

for "Fascist atrocities hostility to the Chinese people

and "collusion with the United States imperialists".

statement included a demand that Her Majesty's Government

should instruct the Hong Kong Government to accept all

the local oro-connunist demands. Subsequently there

were large scale demonstrations outside the Office of H.M.

Chargé d'Affaires in Polting. The house of the First

Secretary in Shanghai was ransacked and he was submitted

to various forms of humiliation. The Chinese authorities

have so far refused to allo. another officer to visit

Shanghai and permit Mr. Hewitt to be withdrawn temporarily

to Peking. If he is withdrawn without a replacement this may result in
the closure of the Office in Shanghai.

3.

Strong oral and written protests have been delivered in Peking by
H.. Chargé d'Affaires about the action against his Office and that in
Shanghai.

All have been

rejected. The Chinese Chargé d'Affaires ad interim in

London was summoned on 16 May to receive a similar protest

//hich

CONFIDENTIAL

CONFIDENTIAL

which was also rejected.

The Commonwealth Office issued statement on 17 May giving a factual
account of what

occurred in Hong Kong and stating that law and order

would be fairly and impartially maintained.

4. There is still no evidence

that

the Chin re are planning to take over Hong Kong. It is equally unclear
how far they intend to push their demands. The Hong Kong police and
garrison (which consists of 61 major units including more than 7000
righting soldiers) could probably contain all but very widespread
disturbances. It is considered unlikely that the Chinese would cut off
water and fresh food as this would harm the Chinese population. If they
do, thore is enough water for a limited daily supply, rice stocks are
high and fresh food could be obtained from Japan though at a much higher
cost. Governor also considers that short of deliberate Chinese

intervention sea and airways could be kent open.

'The

FAR EASTERN DEPARTMENT

19 May, 1967

+

THIS IS A COPY

THE ORIGINAL HAS BEEN RETAINED IN THE DEPARTMENT UNDER SECTION 8(4) OF
THE PUBLIC RECORDS ACT 1958

CONFIDENTIAL

sl

Cypher

CONFIDENTIAL

INWARD TELEGRAM

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