TNAG-0065-FCO40-101-Local-intelligence-reports-1968 — Page 69

0003160 AF. 316

T.S. 4/60 II

SECRET

Colonial Secretariat

Lower Albert Road,

Hong Kong.

29th February, 1968.

POSSIBLE IMPACT ON HONG KONG OF RECENT DEVELOPMENTS

IN VIETN

CURRENT POSITION.

%%%

Attitude of China.

1.

now.

China's best interests are served by a continuation of the war at a level which increasingly engages the Americans without any risk of spilling over into direct action against China. On the evidence of N.C.N.A. releases which stress the need for "perseverance" and "prolonged struggle", the Peking authorities have been taking a relatively cautious line about the present offensive. The Chinese have never made any sacrifices to support the Vietcong and are unlikely to do so

In any case, the chief means by which the Chinese can harass and weaken U.S. efforts in Vietnam is by encouraging subversive elements in Thailand and Laos; important channels of communications with these elements run through Hong Kong. Furthermore, the policies recently imposed upon the local Communists here indicate that the C.P.G. appreciated the disadvantages which resulted from the recent phase of violent confrontation in Hong Kong. It is considered that, if there is no major escalation of the war in Vietnam,it is unlikely that the C.P.G. will sponsor or encourage any major efforts in H.K. either to harass the Americans or to bring pressure on Washington through H.M.G.

Attitude of Hong Kong Communists.

2.

The Vietcong offensive has been hailed as a victory

One and a number of celebratory parties have been held. Communist newspaper, the Wen Wei Pao, has called upon H.K. Chinese to follow the Vietcong example by continuing the struggle until victory. Events have been given a fair degree of prominence in the Communist press but the general tenor has been much less anti-American than could be expected. The indications are that the leadership in Hong Kong also wishes to avoid violence on this issue. There is, nevertheless, always the danger that militants may again try to make

SECRET

/ their