TNAG-0289-FCO40-325-Departmental-briefs-on-Hong-Kong-1971 — Page 129

CONFIDENTIAL

HONG KO

2

BASIC PROBLEMS

Ceopolitical Position

Lease of Neu Temitorios

The Crown Colony of Hong Kong In by far the largest (in terms of economic activity and population) of our remaining Dependent Territories.

It is one of the most

densely populated areas of the world.

There can, however,

by no constitutional progress towards self-government in tho Colony since there have been frequent and plain indications that the Chinese Peoples Government expects the constitutional status quo to be maintained.

2. The Hong Kong Government has constantly to bear in mind the susceptibilities of its infinitely more powerful communist Chinese neighbour while at the same time making it clear to the world at large that it is master in its own house and has no intention of being reduced to a communist cypher as It has happened in the case of its near neighbour liacao. demonstrated the latter point very clearly by its handling of the communist inspired disturbances which occurred in the

One major factor that the communistc Colony during 1967. apparently overlooked on that occasion was that approximately one third of Hong Kong's population of four million people consisted of refugees from Communist China who had "voted with their feet" for the way of life that the Colony coulâ

offer them.

3. Another of Hong Kong's basic problems arises from the fact that the leare of the New Territories (which compriso 365 square miles out of the Colony's total area of 400 square miles) expires in 1997 and there is at the moment no

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