TNAG-0115-FCO40-151-Departmental-briefs-for-Commonwealth-Prime-Minister-s-and-ot-1969 — Page 77

CONFIDENTIAL

Communists have any intention of ceasing their attempts to

undermine the authority of the Hong Kong Government.

Relations with China

3. There has been a slight improvement in relations in recent months. These are still bedevilled by the aftermath of the

1967 disturbances. Peking, has been detained there since July 1967 in retaliation for the imprisonment of certain Communist newspaper workers in Hong Kong who were convicted of offences arising out of the disturbances. There are still 250-300 other Communist

Mr. Grey, the Reuters correspondent in

These will prisoners convicted of offences during 1967. probably continue to be obstacles to better relations for some time to come. But by the care the Chinese have taken to pre-

vent incidents on the frontier and their decision to return

all but two of the yachtsmen who strayed into Chinese waters

they have shown a clear disposition to solve local problems and

avoid points of friction.

Tenure

40 Hong Kong Island and the tip of Kowloon peninsula immediately

opposite it are held in perpetuity. The New Territories are

held on a 99-year lease which expires in 1997. It is

generally accepted that Hong Kong and Kowloon would not be

viable without the New Territories.

It is unlikely that the

Chinese would be willing to allow us to stay in Hong Kong after

the lease expires. At present it would be quite impossible to

negotiate withdrawal from the Colony on any reasonable terms.

It would be advisable to avoid discussion with the Japanese of

the long term future of Hong Kong. If necessary, we should

/state

CONFIDENTIAL