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foreign exchango carnings), which outweighed the political
disadvantages of permitting a colony to oxist on China's doorstep.
The economic factor is still robevant but the development of the Cultural
Rovolution, and with it an increasingly extremist and doctrinaire approach
to all foreign policy problems (e.g. Burna, Nopal, etc.) has much roduced
the voight attached by the Chinose to economic arguments in making policy
docisions. It now appears that extremist revolutionary rebels have
great influence in the Ministry of Foreign Affairs. This has led to a
chango in China's previously pragmatic and opportunist foreign policy.
The Chinese are now hypersensitive to any alleged insults to Mao or the
Cultural Revolution and place an increased omphasis on the importance of
revolutionary and if necessary armed struggle.
5. A further factor which affects Hong Kong is the extent to which
the Chinese Government is in control throughout China and in particular
of Kwangtung Provinco which borders on Hong Kong. There have boon many
reports of confusion and anarchy throughout China.
Much of this has been
the rosult of disagrooment and fighting bottoon Rod Guard groups and
between workers and Rod Guards.
Where order is boing maintained it
appears that this is largely as a result of intervention by the Army.
So far as can bo soon, the Army is the most powerful force in Kwangtung
and generally responsible for law and order. It could be expected that
in sensitive frontier areas the Amy would be placed in charge, and
for the monont, the Army scens to bo taking and oboying orders from
This roduces, but does not entirely eliminato, the possibility
Poking.
of unplanned violonce on the frontier or unplanned incursions into Hong Kong
of Chinose Rod Guards.
6.
Against this background, China's prosont attitudo towards Hong Kong
appears to bc:-
(a) The Chinese romain roluctant to onbark on direct
confrontation with the Hong Kong Government nor are they
likoly to tako military action against tho Colony both
#boccuse
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