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and particularly Taiwan; and as a centre for subversive activities in- cluding propaganda.
IV.
External Policy
11. The principal factor in Hong Kong's external affairs is, of course, the Chinese attitude which was publicly defined by the Chinese Permanent Representative to the United Nations in a letter to the Chairman of the Committee of 24 dated 8 March 1972:
"As is known to all, the questions of Hong Kong and Macao belong to the category of questions resulting from the series of unequal treaties left over by history, treaties which the imporialists imposed on China. Hong Kong and Macao are part of Chinese territory occupied by the British and Portuguese authorities. The settlement of the questions of Hong Kong and Macao is entirely within China's sovereign right and does not at all fall under the ordinary category of "Colonial Territories". Consequently, they should not be included in the list of Colonial Territories covored by the Declaration on the Granting of Independence to Colonial Countries and Peoples. With regard to the questions of Hong Kong and Macao, the Chinese Government has consistently held that they should be settled in an appropriate way when conditions are ripe". Privately Chinese leaders at the highest level have let it be known that while a problem exists, it is for the next generation (or alternatively two or three generations) to solve. They have also said that there will need to be negotiations over the future of Hong Kong in due course and that meanwhile they will take no precipitate action.
12. This, from their point of view, is a satisfactory formula for reconciling their ideological and nationalistic commitment to repossession with more pragmatic considerations favouring the continuance of the status quo. It is scarcely to be expected that they could decido now whether economic or political factors in China will make it desirable to continue special arrangements for Hong Kong; but even if they do accept this, they are most unlikely to admit it, particularly with the succession to Mao still to be
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