neighbouring Kwan-Tung Province. The left wing supporters in
Hong Kong have become more såventurous in their propaganda and
in their attacks on the Americans and the Chinese Nationalists,
but nothing has happened to suggest that the Chinese Government
in Peking has changed its policy towards Hong Kong of maintaining
the status quo.
be [Questions on relations with China lead naturally and
inevitably to the future of Hong Kong. If this is raised, it is
suggested that the Secretary of State might speak in the following
terus7.
On this it is not possible (and politically undesirable) to
nake any long range prediction.
still has 30 years to run.
The losse of the New Territories
We have of course no present thought
of leaving the Colony; our responsibilities to the inhabitants alone
zre good reason for us to stay. But quite apart from this, the
present relationship between Hong Kong and Britain is in our judgment
of benefit to both sides. Our trade with Hong Kong is in rough
balance and the colony provides British industry with about 1% of its
export markets, as well as a base for trade with China and for
countries in the Far East. For Hong Kong of course the British
Market is an important one, taking about 17% of the Colony's exports.
Also, in present circumstances, Hong Kong is a valuable communication
centre in an area where there is almest no convenient alternative.
wider pointsof view the Colony is one of the few points of
direct contact between mainland China and the Western World. It
From
would be in the interest of neither side to do anythẳng which might
lead to its extinction.
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