TNAG-0281-FCO40-317-Visit-of-the-Chancellor-of-the-Duchy-of-Lancaster-to-Hong-Ko-1970 — Page 178

Relations between Chine and Hong Kong

1967,

The situation in Hong Kong is now back to normal after the

disturbances of 1967. At the same time, the normal working

relationship between China and Hong Kong, which existed before

appears to have been resumed. For our part, we shall continue to

foster normal relations between Hong Kong and China, and this is

very much to the benefit of both sides, At the same time the rule

of law must continue to be maintained in Hong Kong.

ŝino/British Relations

Our relations with China have certainly begun to improve,

although so long as British subjects are detained in China this

improvement will inevitably be limited,

official contacts have netertheless been rather more relaxed,

while commercial relations are entering upon a much more active phase,

The Chinese are of course expanding their foreign trade

generally!

the total volume of China's foreign trade with Western

Europe and Japan rose from £536 million in 1967 to £617 million

last year. I am confident that we shall be able to contribute

further to this expansion. It will clearly be to the benefit of

both sides to work for closer relations and to allow more regular

contacts at all levels.

British Cargo liner services to Chine vera sumended in March, 1979.

What has been the effect on trade of #thi?

It is for shipowners to decide when to suspend or resume the

services;

although in view of the detention of British seamen in

Chinese ports and of the uncertainty about port regulations a cortain

reluctance to take more risks would be understandable. As for tho

effect on trade, it is still too early to tell.

/ Defense ...