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fabrics and mado-up articles and non-metallic mineral manufacturos.
The balance of visible tredo in hor favour is of the order of £170 million
a yoar. The impact on Hong Kong of an cnbargo on the food trado is assossod
in paragraph 11 above; it soons possible that it night have sono ropor-
cussions also on the economy of tho Kungtung Provinco. For the rost it
would soon that a trado embargo would be more likely to harm China's
interests than Hong Kong's, although there is dangor itsolf in a course
of action which roduces Hong Kong's economic value to China
15.
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Harassment on coa and air approaches. The Colony's sea and air
approaches aro vory vulnorable to Chinoso interference, ince the ways of
approaching tho Colony without infringing Chinese air space or its claimed
territorial waters aro vory linitod. Thore would be no roady means of
assorting our rights if interference took placo; R.A.F. planos are no
longer based on Hong Kong (although they visit from time to time). Thoro
aro two coastal mineswoopors; a decision to withdraw thom in Septembor
has been announced but is boing roconsidorod. Constant harassment would bo
bound to dotor some air and shipping servicos from calling at Hong Kong,
dausing harm to the tourist traffic and trade. Conploto disruption
of these services would bring Hong Kong's economy to a standstill.
16.
Dononstrations on the Frontier. The Chinoso can quito oasily
organise strong Rod Guard style or ovon military dononstrations on the
frontior in order to maintain a goncral atmosphore of tension and
intimidation, boosting tho morale of the Hong Kong Communists and weakoning
the will to rosiat of those who support us.
17. Propaganda Prossure. Many of the noasuros abovo oxorciso a subtlo
psychological pressure on the minds of the Chinoso community in Hong Kong,
in that they manifest the power of China to intorvene in overwhelming forco
at any time. There are in addition massive Communist propaganda resources
inside the territory. More than a scoare of Communist newspapers and printing
prosses aro churning out openly subversivo and intimidatory natorial and
inciting to violonce and disaffection; Communist bookshops and agencies
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