TNAG-0064-FCO40-100-Commonwealth-Ministers--Defence-discussions-1967 — Page 21

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

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always able to exert its authority).

In such a situation

there is a possibility that local groups or leaders may

take anti-Hong Kong initiatives even against the wishes of

the central authorities. Once any action is taken Peking

could feel bound to back its supporters.

Future Prospects in Hong Kong

14. If Peking decides to back its supporters in an all-out

confrontation to drive us out of Hong Kong then our position would be grovely affected

will quickly become atenable. Public confidence and

troned

before long

world morale will collapse very rapidly and there will be a rush

to come to terms with the other side. There is nothing

we could do to prevent this. We would have to withdraw as

best we could. We do not rate very high the prospects of

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our being able to negotiate an orderly withdrawal.

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15. If the present situation continues, with a controlled

low-level of activity designed to annoy and harass us, there

seems no reason why we should not be able to hold on in

Hong Kong indefinitely (or at least until much nearer the

time when the lease of the New Territories expires in 1997).

We think this can be done even if the Chinese resort to such

measures as cutting off food and water supplies, although

they are unlikely to do this except as part of a policy of

all-out confrontation because it would make them unpopular

with the mass of the people. The key to this situation is

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the maintenance of public confidence; and to do this we

must continue to contain the Communist activities with firm

but restrained measures, avoiding any action which would

make it more difficult for Peking to disengage itself from

its present involvement.

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16. There is, of course, the danger that, in the absence of

instructions from the central authorities or in a situation

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