7447 D073840 101M 8/74 Cr.P.C. 839/3
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SECRET
II.
6.
The Chinese Interest
is
Although we believe that Hong Kong does not constitute a political issue for Chinese leaders at present, there is nevertheless an element of
political embarrassment in its continued existence. Hong Kong is a reminder of China's weakness in the 19th century and remains an area claimed by China outside her administrative control. The existence of the Colonies of Hong Kong and, to a lesser extent, Macao has been used by the Soviet Union in an attempt to undermine China's credentials with the Third World and in waging the ideological war of words between them. Its prosperity is a magnet for discontented elements in the neighbouring provinces, particularly Kwang Tung, and a measure of the gap in living standards China still has to make up.
7.
value
Nevertheless the great practical use of Hong Kong at present outweighs these nationalist and ideological considerations. Of first importance is the Colony's value as a source of foreign exchange. Imports from China were about £600 m. in 1974, a rise of 6.3% over 1973. As a proportion of China's total foreign exchange earnings, however, earnings from Hong Kong on present trends will have declined from 40% annually in the decade prior to 1973 to 20.25% in 1980, as Chinese oil exports gather momentum. know that earnings from Hong Kong are specifically mentioned as a factor in the five year plan now
Свежей
A
We
beginning and we can assume that they will continue
to be significant up to and beyond 1990. Hong Kong is also of value to China as an entrepôt centre for Chinese foreign trade; as a centre of financial and technical expertise servicing Chinese trade in invisibles; as an international point of exit and entry; as an observation post on the outside world, particularly in the Far East and particularly Taiwan; and as a centre for subversive activities including
propaganda.
SECRET 5.
/III.
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