TNAG-0031-FCO40-67-Relations-with-China-1968 — Page 23

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3. We might then proceed to consider whether

the measures now under discussion with the

Governor are likely to provoke a radical

change in Chinese policy towards Hong Kong

i.e. towards pinching off Hong Kong; whether they

are likely to result in a new and more or less

severe probing operationl whether they are

likely to provoke a riposte in another direction

- e.g. against British citizens in China, or

British trade; or whether they are likely to

provoke any reaction at all. This section

might take the following form:-

4.

(a) Given China's other preoccupations and

priorities we do not belive that these

measures (i.e. de-registration of the

Chung Wah School, and permission for

U. S. naval visits to continue but

without "Enterprise") would stimulate a

fundamental change;

(b) We should expect a probing operation or

more or less severity in Hong Kong;

(c) We should also expect some

manifestations of Chinese displeasure in

Peking.

We might then put the question as to

whether at the end of the day, our relations

with China would be any worse than they are now

and whether our prospects of restoring relations

to normal would have suffered a real blow. The

answer might be:-

(a) We are confident that our position in

Hong Kong can be maintained;

/(6)