II.
1.
2.
3.
4.
TOP DECKET
feat
21/2/20
AVCIDING DANGERS AND DISADVANTAGES OF ECONOMIC DECLINE OR CHINESE TAKEOVER
Maintenance of confidence in the Colony. No public discussion of future until absolutely unavoidable. Public attitude of firm confidence in the future. Pursuit of progressive economic and social policies to forestall possible internal unrest.
Avoidance of anything which would provoke Chinese into taking irreversible action.
Cooperation with the US?
Effects of US/Peking rapprochement
But, the above points notwithstanding, confidence will eventually erode in the absence of:
III.
A LONG-TIKM ARRANGEMENT WITH FEKING
Must be considered against:
A.
1.
2.
3.
11.
5.
Chinese Interests
Source of foreign exchange.
Observation post on outside world, particularly important
vis-à-vis the region, most of all Taiwan.
Entrepôt centre for Chinese foreign trade, visible and
invisible.
International point for entry and exit.
Dubversive activities, including propaganda.
(Taken together these explain relatively satisfactory situation existing at present.)
Chinese Attitudes
Hong Kong is Chinese territory.
At present satisfied with the status quo.
B.
1.
2.
3.
4.
Need for negotiations in due time.
5.
will take no surprise action.
Nonetheless unrealistic to assume that nationalistic and to
some extent ideological considerations will not affect
Chinese attitude sooner or later.
THIS IS A COPY
THE ORIGINAL HAS BEEN RETAINED IN THE DEPARTMENT UNDER SECTION
3(4) OF THE PUBLIC RECORDS ACT 1958
POP SECRET
/IV.
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