TNAG-0010-FCO40-46-Kowloon-disturbances-1986 — Page 112

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(THIS DOCUMENT IS THE PROFERTY OF HER BRITANNIC MAJESTY'S GOVERNMENT)

OPD (67)39

24th May, 1967

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DEFENCE AND OVERSEA POLICY COMMITTEE

HONG KONG

10

Memorandum by the Secretary of State for Commonwealth Affairs

But

We have always known that Hong Kong was vulnerable. it is valuable to Ching end we had assumed that it was in her Indeed there has been interests to maintain the status quo. evidence in the past that the Central Government have controlled and restrained the Communists in the territory.

2. The scene hrs now changed. Arising out of labour troubles a major campaign has been mounted in Hong Kong itself linked with hostile demonstrations in Shanghai and Peking and with the expulsion of our representative in Shanghai. (A summary of recent developments is at Annex ). loosening of control by mainland China of the Communists in Hong Kong has resulted from recent

The first mass developments in the Cultural Revolution. demonstrations in Hong Kong were probably promoted independently by the Communists there, in an opportunist desire to make the most of genuine labour unrest. Mainland China had to react to the situation, and chose to give support to the communists in Hong Kong.

3. The unknown factor in the present crisis is how far mainland China has now decided to go in bringing pressure on H.M.G., and how far there are different views there on future policy.

4. The possible interpretations of the Chinese course of action, assuming that she is now controlling events, appear to be these:-

(i) China has made no basic policy change, but is trying to

achieve some propaganda victory as the price for calling- off the disturbances. Such a propaganda gain could relate to the presence of American ships and troops from Vietnam on leave in Hong Kong; or to labour reforms; or to the release from prosecution or imprisonment of the persons charged with or sentenced for their role in the riots.

(ii) China has decided to try to force us to accept a Macao

position in Hong Kong. If this is so, she will continue to escalate Hong Kong disturbances to the point when, in order to remain in Hong Kong, we must capitulate to whatever demands are made, and, in effect, accept Chinese domination of Hong Kong.

(iii) China has decided to sacrifice the economic benefits

she derives from Hong Kong to Cultural Revolution "purity" of doctrine, and to drive us out of Hong Kong completely.

5.

We cannot resist a determined attempt to force us out altogether and we could not tolerate the humiliation of remaining in Hong Kong without effective control. I am convinced that a Macao solution would be unacceptable. It would be damaging to our international prestige (at a time when Gibraltar and den are presenting several problems). It would be intolerable for the Governor, and impossible in terms of my responsibility for Hong Kong in Parliament. This being so, it follows that if China

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