NOTHING TO BE WRITTEN IN THIS MARGIN
: 11 (4200)
CONFIDENTIAL
Government have dropped strong informal hints
from time to time that any advancement of Hong
Kong along normal lines towards self-government
and independence would not be tolerated. More-
over they have let it be known that they would
deprecate discussion of Hong Kong in the United
Nations Committee of Twenty-four and have reacted
to Russian taunts that China tolerates colonies
on its doorstep by making it clear that they
regard the recovery of Hong Kong as a matter for
the Chinese Government alone.
China has very strong economic incentives to
leave undisturbed the status quo in Hong Kong.
China earns an annual surplus of more than
two hundred million pounds on invisible and
visible trade accounts through Hong Kong (a very
substantial part of this total is foreign exchange
earnings) and they are making substantial efforts
to increase these earnings. The principal
surpluses are food exports to Hong Kong and
remittances through Hong Kong from overseas
Chinese. Direct exports from China through Hong
Kong are no longer on a large scale but China is
increasingly using the facilities offered by Hong
Kong export houses and banks for its trade with
the west.
Hong Kong's policy towards China has been one
of "firmness without provocation"; in particular
the colony is careful not to cause offence, e.g.
by avoiding official contacts with the Nationa-
regine lisade in Formosa and by ensuring as far as
/possible
CONFIDNETIAL
Page 60Page 61
No comments yet.
Private notes are available after approval.