TNAG-0743-FCO40-947-Relations-between-China-and-Hong-Kong-1978 — Page 94

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But how long wilt of lost.

g)

(h)

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to the change, as already described in the MOOD paper dated 10.9.75. Over the past three years China's influence in Hong Kong has been increasing further in that her un- disguised Pro-West policies and capitalistic economic activities have helped to crode previous barriers between Chinese agencies and local social sectors with anti-communist

convictions and sentiments.

A very significant indication of CPG's established influence is that the

Hong Kong community at large now refer to the CPG as the Chinese Government

and the Mainland as China, Taiwan has come to be regarded as a mere "territory". Only KMT agencies still refer to Taiwan as "China".

Hong Kong people are no longer so directly concerned with the presence of the U.S. military might guarding Taiwan as a factor helping to protect the security of Hong Kong, as the local community used to believe in the 50's

and 60's.

(i) China's "mushrooming profile in the

Hong Kong investment scene" has given rise to optimistic speculation about Hong Kong's status beyond 1997. Although many businessmen are still cautious about long term projects, a general feeling of relief and confidence currently prevails.

(j)

This feeling is strengthened by the various favourable official statements

/p. 10

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