TNAG-0004-FCO40-40-Departmental-briefs-about-Hong-Kong-1968 — Page 66

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R. 318.

CONFIDENTIAL

PA, a our

intonal

briefing pile. ANT.08.

3.

BRIEF No. 25

28

BRIEF FOR THE COMMONWEALTH SECRETARY's VISIT TO THE FAR EAST:

JANUARY, 1968

HONG KONG

There may be interest in the countries to be visited in the

present situation in Hong Kong, particularly in Australia

(for reasons set out in a separate note). The following talking

points are provided in case of need.

Confrontation and China's Attitude to Hong Kong

1. There have recently been indications that the Communists in

Hong Kong have been directed from Peking to engage in a

"political struggle" and to cease violence.

The significant drop

in the number of bomb incidents in the last few weeks suggests

that this may be correct. But as some Communist elements in

Hong Kong disapprove of the cessation of violence and the situation in Kwangtung Province (from which immediate orders reach Hong Kong) is uncertain, it is possible that isolated acts of

violence might continue.

2. The decision to cease violence (if it has been taken) is

probably the result of the relative failure of the bomb campaign

in the face of the effective and patient policy of the Hong Kong

Government. It is also a reflection of the waning of the

Cultural Revolution in China which has brought with it an increase

in the influence of more realistic and pragmatic elements in the

Chinese leadership.

3. The economy of Hong Kong has suffered surprisingly little

from the disturbances. The value of domestic exports for the

first nine months of 1967 reached the highest figure ever

recorded for the corresponding period in any previous year;

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.

CONFIDENTIAL

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