CONFIDENTIAL
3. We shall continue to seek the restoration of normal working
relations between Hong Kong and China;
there has been some
slight improvement in those relations in recent months, but
while substantial numbers of communists convicted for offences
in 1967 remain in prison, further progress is likely to be slow. Nevertheless the Chinese have shown themselves ready to respond on day-to-day problems (e.g. the return of all but two of the yachtsmen from Hong Kong who strayed into Chinese waters). 4. Steps are being taken to ensure that neither the strength
nor the effectiveness of the Hong Kong garrison will be affected when the withdrawal of British military elements from
Singapore and Malaysia takes place in 1971.
5. The New Territories, without which Hong Kong and Kowloon are
not thought to be viable, are held on a 99-year lease which expires in 1997. The Chinese regard the entire Colony as part
of China and could be expected to react strongly against any
move towards independence. Normal constitutional progress towards any form of self-government for Hong Kong is therefore impossible. The Government are, however, considering how in the sphere of local government ways can be found of associating the people of the Colony more closely with the conduct of their
own affairs.
CONFIDENTIAL
/Background
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