BRIEF
CONFIDENTIAL
Sem by 5/5 Senly
Secretary of State's meeting with
Sir David Trench, Governor of Hong Kong,
2 May, 1968
R318 PA, on
intonal
16.
briefing file
A
I.
Present Situation in Hong Kong
The Secretary of State will wish to hear the Governor's own assessment of the present situation in Hong Kong and likely develop- ments in the Colony's relations with China.
Speaking Notes
2.
The Governor has shown some anxiety in recent informal exchanges
that Ministers may think that, with the cessation of violence in Hong Kong, the threat to the Colony has passed.
The Secretary of
State may wish to reassure him that he is under no illusions about
the situation and realises that the communist threat remains
unchanged, except in form.
Background
Kong
3. Violence in Hong virtually ceased at the end of 1967. There have been recent indications of a slight improvement in relations with China, leading to an easing of the position of our Mission in Peking. After prolonged negotiations with the Chinese People's Government (which involved the grant of special visits to certain communist prisoners held in Hong Kong) access was secured on 23 April to Mr. Grey, Reuters correspondent in Peking, who has been under close house arrest for ten months. However, it is quite
clear that the communists have no present intention of abandoning their efforts to undermine the authority of the Hong Kong Govern-
ment and would still ideally like to bring about a Macao-type
situation in the Colony.
4.
The economy of Hong Kong has shown remarkable resilience in withstanding the effects of last year's disturbances. The Colony's imports, domestic exports and re-exports for 1967 all showed increases over the corresponding figures for 1966. Domestic exports increased by 17%, the highest rate of growth
since 1961.
Speaking Notes
II. Future of Hong Kong
5. The Secretary of State may like to say that he is glad that the Governor has been available for consultation on the preparation by officials of a long term study of future policy towards the
Colony which he, for his part, has not yet, of course, seen.
/ understands
ONFIDENTIAL
He
No comments yet.
Private notes are available after approval.