TNAG-0043-FCO40-79-Future-Sovereignty-of-Hong-Kong-Defence-Review-Working-Party-1968 — Page 58

FCO40 Hong Kong Department Records 聯邦事務部香港部檔案 All

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in the Chinese leadership; but there is always the

danger that extremist elements may gain the ascendancy,

who would be prepared to sacrifice the economic benefits

for doctrinal purity.

Chinese Attitude and Intentions

(g) The Chinese Government regards the whole of Hong Kong

(both ceded and leased areas) as Chinese territory to

be recovered (although they are on record as saying that

they will negotiate its return); and even if they allowed

the lease of the New Territories to run its full term,

we could not expect to re-negotiate it in 1997.

(h) At the moment they are prepared to accept the continuing

existence of the Colony because it brings them economic

and political advantages. The campaign of violence has

been abandoned for the present and they apparently

recognise that a Macao-type situation will take time

to achieve. Their immediate aims are to maximise their

commercial interests in the Colony and to concentrate

on broadening the base of their support among the people.

In certain circumstances, however, this policy might

quickly change for one of reducing the Colony to a

position of subservience or even of taking it over.

(i) We have virtually no means of bringing pressure to

bear upon China but we should nevertheless examine the

scope for withdrawing services and facilities in the

event of another confrontation.

(j) It is unlikely that the Chinese would take Hong Kong

by direct military attack; it would be more in keeping

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/with

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