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(b) prevention of Chinese intrusion (which might take the
form of leaflet raids);
and,
(c) security for operations of airlines, which is essential
if the value to H.M.G. of Hong Kong traffic rights is
to be maintained.
If I may deal with point (c) first, I rather doubt whether a mere lack of capacity to challenge Chinese aircraft would deter airlines from using the extremely valuable and profitable rights they enjoy in the Colony, for so long as Hong Kong were not subjected to intrusions. But if China felt that her aircraft could intrude with more or less impunity into Hong Kong's air space, and such intrusions were to start, then I would judge that In such circumstances the picture could become quite different.
some airlines might well become nervous about oerating to and through Hong Kong, in which case there would undoubtedly be 111- effects on the tourist trade, traffic rights at Hong Kong would become a less valuable bargaining counter in the hands of H.M.G., and there would be a general loss of confidence.
It is
I believe there is also force in the point at (b). true that the Chinese have shown no disposition to intrude up to now; this is probably because (as the Gover or says) they realise that in doing so they would run the risk of an incident, If the element with its attendant international repercussions.
of risk is removed by the withdrawal of all air cover, they might | well be tempted to intervene when it suited them, I and the
Governor have in mind the possibility of their mounting leaflet raids (as you will recall the Indonesians did in Sabah and Karawak) as an indication of their support for their sympathisers It is in Hong Kong and, of course, of their power to intervene. significant that what stopped the Indonesians was the R.A.F. presence in Kuching and Labuan.
However, the overriding consideration is, as always, the need to maintain local confidence and morale. Our position in the Colony rests on this.
of Hong Kong
/have
Although the people
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