TNAG-0028-FCO40-64-Relations-with-China-1968 — Page 2

Report

Last year was a difficult year for Hong Kong British authorities

Report quoting Hong Kong"reactionary"newspapers. says that the reactionary newspapers published various comments on New Year's Day about the Hong Kong situation. These newspapers said that over the past year when the Hong Kong British authorities had been under attacks from the patriotic compatriots in their struggle against. British atrocities, the Hong Kong situation had been "difficult and complicated" and "full of problems" and "a year of difficulties". The newspapers also said that "one should not be satisfied with the present detente". Everyone should "approach the new year with a feeling of caution and be prepared for further difficulties".

The

The "Tsingtao Evening Newspaper" is quoted saying that the disturbances in May and throughout the year seriously disturbed the Hong Kong economy. The economy was also badly affected by British devaluation. One important result of these disturbances was a drastic decrease in bank reserves. "Overseas Chinese Daily" said that unless unprecedented aid plans were implemented towards industry and commerce, then this would be in a serious position. Hong Kong needed foreign trade more than any other county and Hong Kong's reputation abroad over the past year had suffered severely.

The Hong Kong "Ming Pao" of 30 December said that it considered that no real discussions could be held between the

RESTRICTED