RECEIVED IN
ARCHEN. 63
DRAFT
22 JAN1963
HWB/
R 318
Раст
Put on briefing fire
AS
68.
91
22.
ECH FOR COMMONTEALTH SECRETARY
FOLK IN AFFAIRS DEBATE
MONG ACHO
Confrontation
Recent events in Hong Kong indicate that the local communista
are changing their tactics in their confront tion with the
Authorities.
Their use of indiscriminate violence in past months
has served only to alienate the sympathies of the general public
who have made it quite clear that they wholeheartedly support the
forces of law and order. ∙ccordingly it scene likely that the
main communist effort z111 henceforth be directed to the conduct
of a long tera ideological struggle for the hearts and minds of
the people of the Colony. This change in tactics may not appeal
to the more extreme local communist elements and isolated acts of
violence may well continue.
2. The economy of liong Kong has sulfered surprisingly little
from the disturbances. Provisional figurea of the value of
domestic exports for 1967 show an increase of some 17% over 1966; re-exports and imports an increase of 14% and 4% respectively;
the number of tourists has increased; and the port is working
In fact port disruption has been minimal throughout
the disturbances despite communist propaganda reports to the
normally.
contrary.
3.
An agreement was reached with the local Chinese border
authorities at the end of November on various frontier problems. The regulation of problems of this sort at the local level is
clearly possible and desirable. We shall continue to work for
the restoration of normal working relations between Hong Kong and
China.
Defence Aspects of Withdrawal from Far East
•
We shall of course continue to provide for the defence of
Hong Kong after our withdrawal from Malaysia and Singapore.
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