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Border Incidents
16. The "Cultural Revolution" taking place in China has to date
(January 1967) produced no noticable change in the official Chinese
attitude towards Hong Kong. There have been signs of increasing
belligerency in some local communes on the Chinese side of the border
e.g. they have attempted to assert by force some rights they claim over
oyster beds in Deep Bay, and at places along the land border there
have been difficulties with Chinese crossing to work their lands in
British Territory. The incidents that have occurred are however thought to be the result of the heady atmosphere that now prevails in China and
we have no indication that the Chinese Government wishes to exploit
them. For our part we consider that there is little advantage to be
gained taking up these incidents with Peking at the present time
(though we have done this in the case of the oyster bed dispute).
There is however a danger that they may escalate into a more serious
clash and the position will need careful watching.
Macao
17. Rioting developed in Hacao early in December after the Portuguese
authorities had forcibly intervened to prevent unauthorised structural
changes to a Communist owned school. There were casualties including
some deaths. The Communist controlled organisations in Macao supported
by the provincial authorities of Kwantung Province subsequently
presented a number of demands which the Portuguese have, after long
delay, now accepted.
18. Unlike Hong Kong, Macao is of no great economic value to China
(and probably not to Portugal). Our information is that the chinese
wanted to settle the dispute rather than take Macao over.
Our own
interest was that the dispute should be settled, since a Chinese
take-over of Macao might boost emotional pressures in China for the
return of Hong Kong and damage confidence in Hong Kong as to the colony's
future.
19. Our major concern was to do nothing which could be represented as
'intervention' in the dispute. Subject to this, largely on
humanitarian grounds but also to avoid further damage to our relations
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