TNAG-0027-FCO40-63-Relations-with-China-1968 — Page 148

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their women and children at once.

7. On Hong Kong, Monsieur Paye did not repeat the

pessimistio views he had expressed to Sir Patrick Reilly

but admitted that he was not up-to-date on the situation

there and would be interested in anything I could tell him

about it. Fortunately, Hong Kong telegram No. 1421 (attached)

had just arrived in Paris before I left the Embassy to call

on Monsieur Paye. I drew on this to explain to Monsieur

Paye that the situation had bean stabilised during the past

few weeks and that there were sound reasons to believe that

the Hong Kong Government would continue to be successful in

maintaining their authority in the Colony. He did not dispute

(Incidentally, having discussed this question in the

Embassy at Paris, I think it would be useful if the Common-

wealth office could prepare a guidance telegram on the

economic state of Hong Kong after four months of disturbances,

emphasising with figures comparing the present situation

with that last year how the Colony's economy was developing

space in spite of the troubles. I will discuss this with

Mr. Carter.)

this.

8.

Monsieur Paye then spoke about internal developments

in China. His interpretation was not markedly different from

ours. He considered that a significant development had been

the recent divisions appearing in the cultural revolution

leadership in Peking out of which seemed to be emerging a

more moderate and pragmatic element led by Chou En-lai and

/including

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