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sleeping dogs lie but for us to consider an approach to the Chinese for clarification as soon as economic uncertainties in the Colony start to appear. It is possible, but not probable, that signals may develop meanwhile indicating a change of attitude on the Chinese side: the Annex gives details of such possible signals.
9.
On the above analysis any frank discussion with the Chinese during the Secretary of State's visit next year would be premature. The Chinese would not welcome it and if pressed hard would probably be forced to declare an interest in early resumption of sovereignty over Hong Kong at whatever cost to them economically and politically. This would provoke the very situation which is
least favourable to the national interest of both countries.
domestic political difficulties in Britain over Hong Kong are relatively minor compared with the likely political repercussions both over the Government's handling of a hitherto satisfactory situation and over the issue of mass Chinese immigration into this
country.
Present
10.
Moreover, it will be crucially important not to leave the Chinese with any impression of an impending change of policy on our part by engaging them in any discussion of the internal affairs of Hong Kong or by suggesting their cooperation in its administration. Such moves could only safely be undertaken when we ourselves decide, in the light of the situation prevailing both in China and in Hong Kong, that our best interests lie in handing back the Colony. To make them before then would be to lose strategic control of the problem.
11.
This argues for a much more cautious approach next March. A possible line would be to note with satisfaction the present cooperative attitude on both sides with an indication that this is welcome to HMG. The Secretary of State could add that Hong Kong has on occasion given rise to difficulties in Anglo/Chinese relations but that the present cooperative attitude on both sides had worked out well for both. The Hong Kong Government was actively encouraging
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