TNAG-0741-FCO40-945-Relations-between-China-and-Hong-Kong-1978 — Page 123

DSR 11C

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counter-weights to the Soviet Union. There is little

evidence of any current Chinese subversion in Western

Eruope, where they appear not to have given support to

the activities of those claiming to be "Maoists".

China's chief priority will continue to be the contain-

ment of Soviet influence in the Third World, that they

can also be expected to support Third World anti-colonial

and anti-capitalist sentiment and to throw their weight

in all aspects of North-South relations behind the

aspirations of the developing countries.

24.

Implications for the United Kingdom

The preceding paragraphs have sketched out China's

present and likely future policies at home and abroad.

They touch British interests at a number of points:

(a) Hong Kong. The most direct, although not the

most important, is Hong Kong. The continued

existence of the colony is probably of some, but

not great, economic advantage in the United

Kingdom, mainly because of its value in civil

aviation, banking and insurance. The UK has a moral

obligation to the majority of the population who

do not want to be part of China, and we would be

faced with refugee and pensions problems if Hong

Kong was reabsorbed. We therefore share China's

interests in the maintenance of the status quo.

Good political relations with China will be important

in achieving this. It will probably be necessary

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