TNAG-0004-FCO40-40-Departmental-briefs-about-Hong-Kong-1968 — Page 73

CONFIDENTIAL covering TOP SECRET Annex

right.

Recent improvements have been made in labour matters,

notably the decision to introduce by progressive stages a 48-hour

working week for women and young persons in industry (see paragraphs

10-13 below).

7. The New Territories, without which Hong Kong and Kowloon are

not thought to be viable, are held on a 99-year lease, which

expires in 1997. The Chinese regard the entire Colony as part of

China and would react strongly against any move towards independence.

Normal constitutional progress for Hong Kong is therefore impossible

The Government are, however, looking to the sphere of local

government to seek ways in which the people of the Colony may be

more closely associated with the conduct of their own affairs.

Whatever political and social shortcomings there may be in Hong

Kong, the steady (but now manageable) influx of refugees shows

that many people in China, who know what Hong Kong is like,

consider life there preferable to that on the Mainland.

Visits of U.S. Ships and Personnel

8. We continue to afford facilities in Hong Kong to visiting

American warships and to service personnel from Vietnam (including

Australians serving in Vietnam). Given Hong Kong's precarious

position, it is important that the facilities should be for

recreation purposes only and should not include any of a warlike

nature. The Chinese have surprisingly made little use of this

issue in recent months, which has however been the subject of some

strongly worded protests by them in the past.

Hong Kong Garrison

9. We have said (in Parliament) that we intend to maintain an

adequate garrison in the Colony and that we intend to fulfil our

responsibilities and obligations there. No final decisions

have been reached, in the context of the Defence Review, on the

size of the military forces to be maintained in Hong Kong although

some further small reductions were contemplated, in present

circumstances their implementation has been suspended."

/Labour ...