TNAG-0103-FCO40-139-Briefs-and-background-notes-for-Lord-Shepherd-1967 — Page 95

CONFIDENTIAL

3.

Hong Kong's policy towards China has been one of "firmness without

provocation"; in particular the Colony is careful not to cause offence,

0.g. by avoiding official contacts with the Nationalist regine in Formosa

and by ensuring, as far as possible, the latter does not use Hong Kong as a

base for its sabotage and intelligence activities against the mainland.

4.

Recreational visits of American warships and troops to Hong Kong have

been a recurring source of friction in relations with China since escalation

of the war in Vietnam. American worships have been visiting Hong Kong

since the end of the Second World War. No warlike facilities are provided.

These visits bring considerable economic benefits to Hong Kong and play a

part in maintaining public norale. Moreover, they help to keep the Chinese

guessing about the American reaction to any attack on Hong Kong. We have

therefore rejected numerous Chinese protests about these visits, while

nevertheless agreeing with the Americans certain "guide lines" restricting

their use of the Colony's facilities. Since "confrontation" started, the

Chinese have not attempted to make an issue of these visits (which have

taken place on nuch the sane scale as before) although they have continued

to refer to them. There is no doubt that they keep a close watch on then

and particularly on any visits by nuclear-powered warships. It so happened

that during September there were more visits than usual by U.S. warships and

this called forth a comment from the New China News Agency which was somewhat

sharper than such comments have been in recent weeks.

Hong Kong Department,

October, 1967.

CONFIDENTIAL