TNAG-0020-FCO40-56-Facilities-for-US-Forces-1967 — Page 110

TS 8/65 II

44.

February 23rd, 1967.

Thank you very much for your most helpful letter (1213/67 0) of February 9th about visits by U.3. servicemen to Hong Kong • If Admiral Sharp carries out his undertaking, it should indeed be a great help to us.

2.

If I may say so, I thought that your list of arguments was admirable; (on one minor point of detail, we probably derive only about 50% of our foodstuffs from China, but it will do no harm for the Americans to have a rather dramatic view of what is a very real problem).

3.

There is one other argument that might be worth putting orally from time to time when people point out that Chinese protests about American service visits have so far taken only a verbal form. Hong Kong's economic future is dependent on a continuing volume of investment; investment depends on confidence; and confidence can be badly shaken by even verbal protests. Hence what may appear to outsiders to be the Hong Kong Government's undue sensitivity about provoking even verbal complaints by the Chinese,

4.

I am sending copies of this letter to Eddie Bolland in the Foreign Office and to Stewart koss in the Commonwealth office.

tr.

35

(T.A.K. Elliott)

* ALL.

N.C.C. Trench, esq., British smbassy WASHINGTON,

CONFIDENTIAL

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