SECRET
the Second World War. No warlike facilities are provided. These visits
bring considerable economic benefits to Hong Kong and play a part in
maintaining public morale. Moreover, they help to keep the Chinese guessing about the American reaction to any attack on Hong Kong. We have therefore
rejected numerous Chinese protests about these visits, while nevertheless
agreeing with the Americans certain "guide lines" restricting their use of
the Colony's facilities. Since "confrontation" started, the Chinese have not
attempted to make an issue of these visits (which have taken place on much the same scale as before) although they have continued to refer to them.
There is no doubt that they keep a close watch on them and particularly on any visits by muclear powered warships. It so happened that during September
there were more visits than usual by U.S. warships and this called forth a
comment from the New China News Agency which was somewhat sharper than such
comments have been in recent weeks.
Recent Developments
5. There have recently been signs of an improvement in working relations
between Hong Kong and China, although it seeps that the Chinese are uncertain
about what future policy to adopt towards the Colony. The outcome of the
recently concluded border talks between Hong Kong Government officials and
local Chinese border authorities was not unsatisfactory. The number of bomb
incidents has decreased in recent weeks. The tone of the Communist press in
Hong Kong has recently moderated and there have been feelers that may
indicate that the local Communists wish to avoid the inevitable confrontation
that would arise from legal action against Communist newspapers.
6. But even If the Chinese do move towards some form of disengagement it
is unlikely that there will be any quick or far-reaching improvement in
relations; or that they either will or, indeed can, persuade their local
compatriots to turn off the campaign completely. They are continuing to use
our Mission in Peking as hostages for policy in Hong Kong. However, there
has recently been some small improvement in that they have lifted movement
restrictions on members of the Mission (following similar relaxation in
London) and have given exit visas for one member of our Mission, whose wife
has been seriously ill in Peking for some time.
HONG KONG DEAPRTMENT.
·
20 December 1967.
SECRET
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