TNAG-0334-FCO40-370-Visits-of-Secretary-of-State-for-Foreign-and-Commonwealth-Af-1972 — Page 13

CONFIDENTIAL

Brief No 4

HONG KONG/CHINA RELATIONS AND THE FUTURE OF HONG KONG

BACKGROUND

CHINESE POLICY TOWARDS HONG KONG

1. The Chinese regard Hong Kong (both the ceded and leased

areas) as Chinese territory, which will eventually return to

China. They must be aware that the Colony cannot be defended

for any significant length of time against a determined

Chinese attack or against large Communist-inspired disturbances

if reinforced by substantial military intervention from China.

In any case the Chinese have at their disposal ample means of

making difficulties for the Hong Kong Government. But for the

time being the Chinese are prepared to accept the existence of

the Colony in its present form, since it brings them considerable

economic and political advantages.

2. Chou En-lai told Mr Malcom MacDonald on 1 November 1971

that "Hong Kong is a place which will be returned to China, but

the Chinese Government had not raised this and it would not be

raised for a long time. The lease of Kowloon (sic) expires in

1997".

This is the first time a Chinese leader has categorically

linked their attitude to Hong Kong to the expiry of the New

Territories' lease. We have treated Chou's remarks as confidential

but the Chinese are obviously anxious to reassure Hong Kong

residents publicly about the future. For example an article

in "Newsweek" of 13 December 1971 said:

3.

"A Chinese official whose rank ensures that he had prior

approval from Peking told a Hong Kong businessman, that

110 moves would be made against Hong Kong for a long time to

come."

While the Chinese Government are content for reasons of self-

CONFIDENTIAL

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