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11.
(c)
more importantly) the Russians and
their East Europe and other allies
must be prevented from establishing
a foothold in the territory, and from
using it as a base for intelligence
and other activities.
Supporters of the People's Republic of China in
Hong Kong must not be subjected to political restrictions, and must be free, where they think necessary, to run their own institutions in parallel with those operated by the Government (eg schools, though there are some signs that the Communist schools in Hong Kong are ready for closer co-operation with government); and
Chinese enterprises (eg banks and trading companies) must be free to establish themselves and operate
without hindrance.
Within this broad framework, which is unlikely to change significantly over the next ten years, the Chinese have been content for Hong Kong to be administered on traditional colonial lines and
have seldom sought to influence the Hong Kong Government's purely domestic policies. However, Chinese attitudes, and the uncertainty
about the future, do in practice impose certain constraints. The following paragraphs seek to identify some of the specific problems which may arise over the next ten years and to assess how much flexibility we are likely to have in dealing with them.
INSTITUTIONAL DEVELOPMENTS
12. It has always been assumed that because the normal path to independence is blocked the form of government in Hong Kong must remain non-representational. Generally speaking, this assessment is likely to remain valid: it is difficult to imagine the Chinese
/being
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