TNAG-0212-FCO40-248-Departmental-briefs-on-Hong-Kong-1970 — Page 117

ideological

Reference..

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Paragraph 19

I suggest that this might read, "The dispute with the Soviet Union, which has deep historical and ideological roots, is a major preoccupation of Chinese foreign policy. Throughout last year relations deteriorated sharply and there were clashes along the borders, together with rumours of a possible Soviet attack upon China. Since the border talks began in October last year, tension between the two countries has lessened but their periodic exchanges of polemics have shown no sign of coming to an end as long as Mao remains at the helm, any marked improvement in relations seems out of the question. Though a major military conflict between the two sides is unlikely, a Presh outbreak of border clashes cannot be ruled out Though Some improvement in inter-State relations may prove possible in the long term, particu- larly after the death of Mao the ideological quarrel seems likely to last for a very long time to come.

Paragraph 20

I suggest that this might read, "The Chinese regard Hong Kong (both the ceded and leased territories) as part of China to be recovered at a favourable moment. At the same time they are content to acquiesce in the continued existence of the Colony in its present form in view of the substantial economic advantages which they derive from it. The most authoritative official statement of their view came in a Peking People's Daily editorial of 8 March, 1963, which stated that "With regard to the outstanding issues, which are a legacy of the past, we have always held that when conditions are ripe (such questions) should be settled peacefully through negotia- tions". The Communist austurbances in Hong Kong during the last eight months vr 1967 do not appear to have been instigated by Peking. It is more likely that they were caused by local Communists using the Cultural Revolution in China as a justification for extremist action in Hong Kong. Since the end of 1967 the Communists appear to have abandoned their violent confrontation with the Hong Kong Government, probably under instruction from Peking. They have now focussed their efforts on a long-term struggle within legal limits designed to win the mass support of the people in the Colony.(through exploitation of alleged social grievaneee) has the cour

this struggle Hey lose no opportunity of exploiting any real or

alleged defieseners in the admonitiation of the story's affairs.

Paragraph 21

The economy of Hong Kong has continued to grow and diversify very rapidly. Domestic exports in 1969 showed a 25% growth over the previous year, and reached a value of BHK 10,500 million. The disturbances of 1967 proved only a temporary setback to the Colony's economic growth.

Paragraph 32

JI

I suggest that paragraph 32 might read, "The Chinese

CONFIDENTIAL

have