of the loss of Hong Kong though adverse would be fairly marginal (paragraph 9). This broad judgement is subject to qualification only in so far as H.M.G. might feel constrained following loss of Hong Kong to incur significant economic costs to achieve political purposes. 21. Finally it has to be remembered that the above Judgement is in terms of comparing the 1966 position with that which might obtain following loss of Hong Kong. fact the economic value to the U.I. of Hong Kong can be expected to diminish with continuing Chinese pressure and in due course Hong Kong could become an economic burden
upon us.
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