W.3.
Top SECRET
(11)
March, 1967.
DEFENCE LIFEI ITUK KURY No. 13
Special Study on long kong.
Hong Kong was acquired from China by treaties entered into in the last osatury. far the greater part of the colony, the New Territories (364 out of 398 sqamre miles), is held on lease expiring in 1997. It is a Croma Colony, ažzinistered by the Governo: with the advice and consent of Executive and Legislative Councils consisting of officials and nominate mofficial maabers. The Chine no
attitude towards the Colony imposes limitations on constitutional advance.
2.
The population has grown enormously since the War, with the influx of large members of refugees from China,
at ebout 3.8 million. 99% of the population is Chinese, but probably mo then half now have the status of British subjects.
3.
Hong Kong is entirely self-cupeting and does not depeni on eny grent or other aid from the ini ted Kingiom. In 1949–5. 1±8 itional entre-pot trade was shattered by the combined effect of the advent to power of
Communist Government in China and the Korean war, Started largely by the finance and skills of overseas Chinese who sought refute in the Colony, instry is now the basis of its soɑnowy, secounting for more than 857
domestic
exports. Industrial expansion continues to depend very largely on outside investxant and, in the absence of
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