SECRET

MEMORANDUM RELATING TO PROBLEMS WHICH MAY BECOME

SUBJECTS OF CONTROVERSY OK NEGOTIATION BETWEEN

HONG KONG AND CHINESE COMUNIST REGIME.

INTRODUCTION.

This paper deals in general terms with problems affecting Hong Kong which may arise and call for solution when the Chinese Communists have taken over most of South China and consolidated their control over China as a whole. The problems are stated, and courses of action suggested.

2.

The following are the subjects dealt with. (The Chinese Maritime Customs and Chinese official Representation in Hong Kong have been made the subjects of separate papers)-

I. Presa

Shipping

Civil Aviation.

Kowloon-Clnton kailway.

Chinese official representation in

Hore hon.

Travel: frontier formalities and

passports.

II.

111.

IV.

V.

VI.

VII.

Postal and telecommunications.

VIII.

Kadio.

IX.

Civil liberties.

X.

XI.

XII.

XIII.

XIV.

Labour.

Meteorological services.

Naval.

Military.

K.M.T. Assets.

XV. XVI.

Kowloon City.

New Territories.

GENERAL CONSIDERATIONS.

3.

Any measures against the Chinese Communists in Non- Kong will be infinitely more effective and easier to take without fear of repercussions if they are part of an overall policy by H.M.G. applied not only in the United Kingdom and in Hong Kong, but also in Malaya and other British territorios where Chinese Communist agitation may have penetrated. It is desirable to avoid as far as possible Hong Kong becoming the main instrument for retaliation against Communist pinpricks and hostile measures, since this will throw on Hong Kong the main concentration of Communist counter abuse and attack, which might well implicate H.M.G. itself in major problems.

LEGAL CONSIDERATIONS.

4.

In order to counter successfully Communist abuse of freedoms and privileges in Hong Kong, and in order to make it possible for counter or retaliatory action to be taken in Hong Kong for hostile Communist actions against British inter- ests in China, reinforcement of legislation is likely to be necessary on a number of subjects. Draft Emergency Regulatis, completely revised and elaborated, are held in readiness and can be brought into effect at short notice. These Emergency Regulations give power or otherwise make provision in regard so most of the problems dealt with in this paper with the excep- tion of such matters as fall within the ambit of the Immigra- tion Control Ordinance, 1949, the Public Order Ordinance 1948, and the Expulsion of Undesirables Ordinance 1949. Preparation or the legislation side has therefore so far as can reasonably

be foreseen.

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