CO537-2187 — Page 140

claims, if renewed, with the plea that the retrocession

of Hong Kong vasca matter of political expediency, and

there seem to be no other adequate reasons which could

be given. nov shin” sử phon (40)

1970. miThe retrocession of Hong Kong would alsoMA

seriously affect the trade interests of this and other

+

countries, including China herself. Under British

administration the Colony is of great value to British,

Chinese and other trade interests in China and throughout

the Far East, asciteconstitutes a base providing

conditions in which business can be transacted with.

reasonable security..If Hong Kong were given up to

China, there would be no such basé and British and other

trade interests would be placed in the greatest difficulties.

10.

So far as concerns the defence aspect, the

present agreed policy with regard to the defence of

Hong Kong is briefly that, since the Colony cannot be

defended against attack by a major power in occupation

of the Chinese mainland, Hong Kong should be regarded

as an undefended port so far as fixed defences are concerned.

Plans and preparations should however be made to enable

the necessary mobile defences to be introduced at short

notice should werrequire to use Hong Kong as an operational

Naval and Airobase in the event ofda ware in the Pacific,

during which China was in friendly hands. The present

and future garrison of Hong Kong, augmented by reinforcements

from South East Asia, is considered strong enough to

repel small scale aggression: by a hostile Chinese war lord.

There would therefore be some advantage, from the defence

point of view, in the retention of Hong Kong.

11.

Mention should also be made of the assurances

concerning our intentions with regard to Hong Kong which

have been made within recent years. A summary of such

assurances is attached as Annex I.. It is assumed that,

in view of these assurances and the reasons set out in the

preceding

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