SPEAKING NOTES
(For Secretary of State's meeting with all Party
Anglo-Hong Kong Committeo in House of Commons
on Wednesday, 3rd May, 1967).
RELATIONS DITH CHINA.
Hong Kong's relations with Chine have been remarkably stable
in the last seven or eight years. There is no doubt that an
important factor in this relationship is the Colony's great economic
value to China. The trade balance in favour of China at present i
in the region of £200 m. per year.
2.
The major bons of contention at present is the use of Hong Kong
made by American forces especially those from Vietnam, and we have
received in the past two years three notes from Chinese Government
alleging that Hong Kong is used by U.S. forces as a military base.
Our replies to all these notes rejected the allegations. Since the
end of the second world war the U.S. Pacific fleet has frequently
and regularly visited Hong Kong for rest and recreational visits. The
increase in the mumbers of mich vessels since the heightening of the
Vietnam war has in fact been remarkably mall, It is of course
entirely untrue that the Americans are using Hong Kong as a base for
their operations. Their Forces visit Hong Kong for loave but for no
other purpose. There are no U.S. installations of warlike nature in
Hong Kong nor have the visiting ships asked for or been given any
services or facilities at Hong Kong that are not normally available
to naval ships at any major port.
3. As to the present situation in China and how it night affect
Hong Kong, the information reaching us is too fragmentary to form
any definite conclusions on what precisely is happening there or what
the future will hold. I noticed during my visit that there appeared
to be some apprehension in Hong Kong arising from the recent events
in Maoso and the lack of information on what was happening in the
/moighbouring
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Private notes are available after approval.