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Wellington telegram No. 1 Saving to Commonwealth Office
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pupular support for the Communists in Hong Kong, which was one of the most striking features of the trouble during 1967, and also to the firm line of the authorities in dealing with the disturbances and to the increasing influences of more moderate elements in China who recognize Hong Kong's economic value to them. But there is no doubt at all, Mr Chairman, that the Communists will continue in their efforts to undermine the authority of the Hong Kong
Government. The left-wing press for instance, maintains a steady flow of anti-British propaganda and local Communist organizations make persistent efforts to broaden their support. The economic situation in the Colony is of some interest to my colleagues. ⠀ Economic confidence in the Colony, although somewhat shaken last summer, was not long in returning. The remarkable resilience of
the economy of Hong Kong is shown by the fact the the Colony's imports, domestic exports and re-exports for 1967 all showed increase over the corresponding figures for 1966 and in the case of domestic exports from Hong Kong, the increase is really striking, indeed of a dramatic nature, being no less than 17 percent, which represents the highest rate of growth since 1961. This is really a remarkable testimony to the resilience of the people of Hong Kong and to the speed by which they regained their confidence after all these Communist pressures. I can assure my colleagues around this table that the Hong Kong Government will continue to take whatever measures may be necessary to maintain peace, order, and good government. In doing so, they will continue to have the full support ofthe United Kingdom Government and we plan to maintain a garrison there sufficient to meet our responsibilities.
Mr Chairman, I thought it best to deal in this statement with matters for which the United Kingdom Government has a direct respon- sibility, with Malaysia, Singapore, and with Hong Kong which I have just been describing. The Secretary-General in his Report to the Council on the situation in the Treaty Area has observed that the future withdrawal of British forces from the Area provides a compelling reason for the achievement of regional integration. He has emphasized that the present situation demands that the countries of South-East Asia seize every opportunity of drawing closer together in mutual encouragement and support, by regional alignments and reciprocal understanding in the fields of defence and economic development. I am sure that there is much truth in this and I am indeed encouraged that the past year has seen real
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