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with us.
In whatever circumstances we abdicate
our position it will be impossible to discharge. all our responsibilities to the Hong Kong Chinese or to remove or protect all British and Hong Kong-owned assets (other than a proportion of the moveable assets).
Chinese Interests (Paragraphs 28-36)
(e) Hong Kong provides China with casy access to the
free world for trade, travel and subversive
activities. In our hands it is of considerable
economic value to China, accounting for about a
third of its total foreign exchange earnings;
while in Chinese hands it would be almost value-
less. However, as China's economy develops the
relative value of Hong Kong in this connection
could diminish.
(f)
There is evidence that these economic considerations
are still regarded as paramount by the more moderate pragmatic elements who are now extending their influence in the Chinese leadership; but there is always the danger that extremist elements may gain the ascendancy, who would be prepared to
sacrifice the economic benefits.
Chinese Attitude and Intentions (Paragraphs 37-50)
(g) The Chinese regard the whole of Hong Kong (both coded and leased areas) as Chinese territory to be recovered (although they are on record as saying that they will "negotiate" its return); and even if they allowed the lease of the New Territories to run its full term, we could not
expect to re-negotiate it in 1997.
(h) At the moment they are prepared to accept the continuing existence of the Colony because it brings them economic and political advantages. The campaign of violence has been abandoned for the present and they apparently recognise that it may take a long time to bring the Hong Kong
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