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be possible at some stage before then to
negotiate an orderly withdrawal from Hong
Kong.
7.
There is an alternative possibility
that the Cultural Revolution will end in the
disintegration of China into regional
groupings acting independently of the central
government. Such a situation could occur
without any formal declaration of independence
and would be reminiscent of the warlord period
in the 1930s. Under such conditions it is
conceivable that Kwangtung might fall under
the control f a local leader prepared to act
independently of Peking. In such circumstances
it might be possible to negotiate with this
leader either to assure the continued exist-
ence of Hong Kong (which would be of great
economic benefit to Kwangtung) or for an
orderly withdrawal. We consider that this
is a possibility which must be borne in mind
but that it does not at present seem to be
a likely outcome of the Cultural Revolution.
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