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propaganda, intimidation
a dominant position in the Colony.
A heightening of the level of propaganda would probably precede another serious attempt to achieve this dominance. The nature and intensity of propaganda about Hong Kong, both
within the Colony and outside, should therefore serve as an
indicator of Chinese intentions.
Our Ability to Influence Chinese Attitudes and Policies
44. It must be recognised that our ability to bring influence or pressure to bear upon the Chinese to modify their policies in our favour is minimal if indeed it exists. Nevertheless,
we provide China with certain services and facilities in the
fields of commerce, shipping, banking and insurance which we could, if necessary, interrupt. Action on these lines would
probably do no more than inconvenience the Chinese and in any
case we are inhibited from it by the adverse effect it would have on Hong Kong's economy, However at a moment of renewed tension, for example if the Chinese mounted another confrontion,
we might wish to consider such action in order to cause the Chinese to reflect on their true interests and to bring home
to them the measure of our determination to maintain our
position. We should keep under interdepartmental review what means we have (if any) of exercising effective economic
pressure upon China.
The Effect of China's Attitude on Policy in Hong Kong
45. The lesson of the 1967 confrontation is that we should show firmly and resolutely that it is our intention to hold our position in Hong Kong; to do otherwise would convey to the Chinese the impression that Hong Kong is a ripe plum which will fall into their lap at the slightest disturbance of the tree. On the other hand, since China has the power at any time either to take over Hong Kong physically by military action or to reduce the Hong Kong Government to impotence by a planned and properly directed campaign of disorder and violence, but is prepared for the moment in her own interests not to do so; and since such toleration of a colony on her dourstep is something of an embarrassment from the ideological and nationalistic viewpoint, it is always necessary for the Hong Kong Government to maintain a balance between the
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/necessity
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