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has reversed this policy, embarking on a calculated attempt to reassert Soviet influence in Asia at Chinese expense. Apart from cultivating their bilateral relations with selected countries of the area, the Russians have sought to counter Chinese charges that they have betrayed the revolutionary cause by arguing that it is China's refusal to co-operate with other "progressive" forces in the struggle against imperialism, for instance in Viet-Nam, that has encouraged imperialist aggression. They have also represented the Tashkent Conference on Indo-Pakistani differences as a model for the peaceful and constructive solution of other disputes. At all times the Russians have shown themselves reluctant to become directly involved militarily in Asia.
19. The Sino Soviet dispute caused China to turn in on her own resources economically (Soviet experts and technical knowhow were withdrawn from China in 1960). This had a serious retarding effect on Chinese economic development though in one sector nuclear development China undoubtedly gained in prestige by having to "go it alone". This cleavage from the Soviet Union caused China to move to a position of unprecedented isolation in the Communist world and to reassert still more stridently her claim to the leadership of the Communist world and her position as a model and guide to uncommitted countries on the path of social and political change and the overthrow of "imperialism" and "colonialism". Relations between China and the Soviet Union show no signs of rising from their present nadir. If after Mao disappears a more moderate leadership emcrgos in China, there may be moves towards limited accommodations with the Soviet Union, but national and ideological differences are likely to persist. The general trend towards polycentrism in the Communist world will make it impossible for the Soviet Union ever again to assert hegemony over China.
Hong Kong
20.
It is doubtful whether the Communist disturbances in Hong Kong during the last eight months of 1967 were deliberately inspired from Peking. It is more likely that they were caused by the impact of an overspill of the Chinese cultural revolution on the local Communist leadership. The Chinese regard Hong Kong (including the New Territories, lease of which expires in 1997) as part of China. They consider that all the 19th century treaties with the Great Powers were "unequal" and that the present Chinese Government should not necessarily continue to be bound by them. The most specific official statement about the way in which the Chinese regard the treaties relating to Hong Kong appeared in Peking 'Peoples Daily' editorial of 8 March, 1963, which stated that "with regard to the outstanding issues which arc a legacy of the past we have always held that when conditions arc ripe (such questions) should be settled peacefully through negotiations". Although violence virtually ceased in the Colony at the end of 1967, there has been no indication whatever that the Communiste have any intention of discontinuing their efforts to undermine the authority of the Hong Kong Government. They have in fact switched their efforts from violent confrontation to a long term ideological struggle to win the mass support of the people of the Colony.
21. The resilience of the Hong Kong economy is demonstrated by the fact that, despite last year's disturbances, the Colony's domestic exports, re-exports and imports all showed increases over the 1966 figures. In the case of domestic exports the increase amounted to 17%, representing the greatest growth rate since 1961.
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