TOP SECRET
of the United Kingdom and Colonies into Communist hands, there are
certain other factors to be considered:-
(a) Hong Kong is China's largest trading partner and this
trade, both visibles and invisibles, is today worth
$580-600 million (US) annually in foreign exchange to
the Chinese. This is over one-third of China's total
foreign exchange earnings. It more than pays for all
her cereal imports. The day Hong Kong returns to China
this flow of foreign exchange will cease and China will
also have difficulty in finding markets for her farmers
who at the moment provide food for Hong Kong at a vastly
higher standard of living than exists in China.
(b)
Hong Kong under Chinese ownership will no longer be the
power house it is today. Nor would Hong Kong continue
to have access to the markets of the world. Hong Kong
would probably sink to the level of Shanghai and for the
same reasons.
(c) Hong Kong's tourist and entrepot earnings would quickly
dry up.
(a) China is still a very backward country agriculturally,
economically and industrially.
Even under less
doctrinaire leadership than it has at present, it will
take a very long time to achieve even modest economic
success.
All these factors rationally militate against the Chinese Government
taking voluntarily a decision to regain control of the Colony until
they no longer need the foreign exchange benefit of it.
Nevertheless
/we
-4-
TOP SECRET
No comments yet.
Private notes are available after approval.