TNAG-0624-FCO40-772-Visit-of-Sir-Peter-Carey-(Permanent-Secretary--Department-of-1977 — Page 16

CONFIDENTIAL

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referred to the issue during the Foreign and Commonwealth Secretary's visit to China in May of last year. Mr Crosland told them that HMG's view had not changed. The presence of an official Chinese representative in Hong Kong (as opposed to unofficial representatives in, for example, the Bank of China and the Offices of the NCNA) would it is believed undermine the

Governor's position and would give China an unacceptable degree of influence over the Colony's affairs.

20. The interests of the Nationalist (Taiwan) Organisations in Hong Kong parallel those of China, but on a much reduced scale. The Kuomintang (KMT) operating covertly, is careful to avoid disturbing the status quo. It controls a number of Trade Unions, schools and other organisations; but its general influence is

much smaller than that of the Communists. There are also a few small political groups composed mainly of middle class Chinese and expatriates. Most of them aim to widen popular representation within the Legislative Council without changing the basic pattern of government.

FOREIGN AND COMMONWEALTH OFFICE

12 January 1977

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CONFIDENTIAL

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