TNAG-0005-FCO40-41-Departmental-briefs-about-Hong-Kong-1968 — Page 64

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37. On the northern edge of South East Asia,

Hong Kong and Taiwan pose special problems

in the West's relations with China. The

Chinese and British interests in Hong Kong

are roughly converse: for the former, Hong Kong

is a part of China to be taken back in due

course, but it is also a forward base from

which to mount political activities in the

outside world and a valuable source of foreign

exchange: for the latter it is a listening

post to communist China, an international

communications centre and a centre of

important commercial activity. Other western

countries also have a considerable interest

in Hong Kong, and is evidenced by their

sizeable diplomatic and commercial represent-

ation there.

38. In the short term, the Chinese ideally

Would like to produce a Macha type situation,

in which they would control events in a

nominally British colony so that activities

conducive to their interests could still go

on. In the longer term, their aim is to

remove the sole remaining colony on the

mainland of Asia, an inevitable irritant to

China pride. Logically, they are likely to

do this only when they consider that their

strength or western weakness reduce the risks

to an acceptable level. The logic may not

prevail and an earlier take-over bid (certainly

before 1997 when the New Territories on the

mainland are due to be returned to China) must

be counted a distinct possibility. In such

circumstances, would most western European

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