TNAG-0122-FCO40-158-Future-of-Hong-Kong-1968 — Page 66

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X

with their theory of indigenous revolution to create,

by local action, a breakdown of authority in the

Colony.

(k) As 1997 approaches confidence will inevitably drain

away with adverse political and economic effects making

it increasingly difficult for us to maintain our

position.

Fough

This will raise some very difficult problems

in the spheres of economic and social policy and in the

of these problems

public service; in which studies (necessarily conducted

can best be

within a limited circle) are being put in hand in

Hong Kong.

American Involvement, (Paras $1-53)

(1) The Americans make great use of Hong Kong and would wish

at leasi

Peking not

(m) Fear of American retaliation (which we might foster) may

us to stay, as long as there is a commonest Government in recognised by them.

inhibit the Chinese from taking any action that could be

clearly defined as "Chinese agression". he might consider separately whether we should seeks American support and understanding Withdrawal for the policies we desire to adopt".

(Paras 54-83)

(n) Hong Kong's future must eventually lie in China. This

is likely to become an issue in the 1980s (when

confidence and the economy must inevitably start to

run down) or earlier if, in the meantime, Chinese

pressures carry the indication that China has a serious

intention to make our position untenable.

But in

present circumstances we need not

A

indeed, we cannot

contemplate action to this end.

(o) When we do decide to withdraw we will face major

problems (some insoluble) in the discharge of our

responsibilities towards the Chinese section of the

community (particularly those who are British subjects

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/or