TNAG-0334-FCO40-370-Visits-of-Secretary-of-State-for-Foreign-and-Commonwealth-Af-1972 — Page 11

SECRETARY OF STATE'S VISIT TO HONG KONG

FEBRUARY 1972

DEFENSIVE

Brief No 3

THE EMERGENCE OF CHINA

1.

We welcome China's return to the international community.

Over 20 countries have established relations with her since

1970. Our new Chargé d'Affaires in Peking will continue our

discussions about an exchange of Ambassadors. We hope it will

be possible to reach agreement soon.

PRESIDENT NIXON'S VISIT

2. The Secretary of State may wish to repeat that we welcome the

visit and to emphasise that Hong Kong has nothing to fear from it.

Any decrease in Sino/US hostility will not affect Hong Kong's

security. Indeed a lowering of tension in the area should benefit

Hong Kong. If Sino/US trade develops, this will likewise not be at

Hong Kong's expense. The volume of Sino/US trade, in which

Hong Kong plays a middle role, is still extremely small. If it

develops, a considerable proportion would no doubt pass direct

between the two countries but indirect trade via Hong Kong would

also increase. Even in the unlikely event of indirect trade

declining, the effect on Hong Kong's economy would be minimal since

the quantities involved are so small.

INTERNAL DEVELOPMENTS IN CHINA

3. In view of China's obvious sensitivity about the recent

leadership crisis, the Secretary of State may wish to take the line

that it is not for us to speculate on China's internal problems.

All of the above may be used in response to enquiries.

4.