CONFIDENTIAL
3. The Hong Kong Government are doing what they can to improve
the environment in the Walled City. Last year they started to
clear the sensitive areas on the fringe of it. They plan to
continue this clearance, which will take some years to complete.
They hope thereby to create a public demand for redevelopment
within the Walled City itself. In December last year the Public
Works Department took action to halt the construction and
occupation of two unfinished and unoccupied illegal multi-storey
buildings built on Crown land on the periphery of the City. This
provoked little public reaction in Hong Kong and none from Peking.
Despite its reputation, the Walled City is relatively crime free
compared with neighbouring parts of Kowloon, and the police have
no serious problem about operating against vice. In January 1973
there was a minor incident resulting from a drugs raid but this
caused no adverse reaction. Welfare and other services are
provided within the area and general legislation is in force
where this can be done without risking incidents. But the place
remains a slum.
Line to Take (in public)
4. The Prime Minister may wish to limit himself to confirming
that the question was, or was not, discussed in Peking.
(With Executive Council and Legislative Council)
Depending on what, if anything, is said on the subject in Peking,
the Prime Minister could say that we agree with the Governor's
view that we should not at this stage raise the question with
Peking. Until we could be more certain of a favourable response,
we think it would be a mistake to put the Chinese in a position
where they could reopen the dispute about the status of the City.
/They
2
CONFIDENTIAL
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