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CHINESE GOVERNMENT OFFICIALS IN HONG KONG, WHO DEAL VERY

EFFICIENTLY WITH ALL PRACTICAL QUESTIONS OF COMMERCE, CULTURE,
INFORMATION AND. TRANSPORT.

/(IV)

SECRET

(IV) (IF PRESSED) YOU HAVE MENTIONED THE PRESENCE IN HONG KONG OF A
COMMISSIONER OF THE NATIONALIST GOVERNMENT FROM

1946 TO 1949. QUITE FRANKLY, THE ACTIVITIES OF THIS COMMISSIONER

CAUSED US A GOOD DEAL OF TROUBLE AND EMBARRASSMENT. WE DO NOT

THINK THAT A REPRESENTATIVE OF THE CHINESE MINISTRY OF FOREIGN AFFAIRS
WOULD CAUSE US EMBARRASSMENT IN THE SAME WAY. NEVERTHELESS, WE BELIEVE
THAT THE OVERRIDING CONSIDERATION MUST BE TO PRESERVE A SITUATION WHICH
WORKS WELL AND WHOSE DISTURBANCE COULD DAMAGE RELATIONS BETWEEN OUR TWO
COUNTRIES.

(V) ( IF PRESSED TO RECONSIDER THE CHINESE PROPOSAL)

I HAVE TAKEN CAREFUL NOTE OF ALL YOU SAID.

ENDS.

2. IF YOU HAVE AN COMMENTS GRATEFUL TO RECEIVE THESE BY THE

END OF 23 OCTOBER.

DOUGLAS-HOME

FILES

FED

IKIOD

PS TO MR ROYLE

MR WILFORD

FFFFF

SECRET

Lung 'heung Daily News (Saturday 19/8/72)

Editorial:

Be on the alerti

Local Communists are now more wicked than in 1967

2/ OCT 1972 !

FEH 3/3.

There is no sign that the ambitions of Maoists in Hong Kong are being
abandoned following the recent diplomatic thaw between Peking and
London.

They will change their tactics but never their ultimate objectives which
will be pursued according to the exigency of the situation.

Like other Western countries, Hong Kong has been the target of Peking's
recent "smiling offensive" in an effort to court favour from the people,

of Hong Kong.. This mood of friendliness is diametrically opposite to
that displayed in the 1967 episode.

Besides, local leftists are trying secretly to organise a series of
"China tours" in a bid to secure the support of those who, they doen,
can serve their interests best.

All these are geared to arousing a friendly feeling towards Peking on
the part of the general public,making them forget the sins the
Communists had done to Hong Kong previously, This is vividly manifested
by the motto of "friendship first", echoed by the visiting Chinese table
tennis team here recently and intended to cheat the people of Hong Kong.

Peking interprets "friendship" in terms of a total and unconditional
submission to it; otherwise, it is "animosity".

A recent survey reveals that local Communists have succeeded in stepping
up their infiltration into banking, trade and trade unions since the
1967 disturbances.

The increasing grip of the leftists in trade unions is shown by the fact
that there is a substantial increase of membership in left-wing unions
since 1968.

These findings point to the fact that the Communists are pursuing a
double-faced strategy with the ultimate aim of controlling our economy,
finance, education and industries.

The Colony's security will be jeopardised if only half of this malicious
plot comes into fruition. Compared with their tactics used in 1967, this
is far more wicked. Instead of advocating open rebellion, they are
trying to subjugate Hong Kong by strangling its throat.

The public therefore ought to keep constant vigilance even in time of
peace and prosperity so that they will not be caught unprepared by
another crisis.

ра

Hongkong Times Monday, August 21, 1972.

Editorial:

Beware of local Commumiste

Don't forget the events of 1967

The paper warned that

Chinese Communists in Hong Kong

were still active in their subversive

and infiltration activities although

the 1967 disturbances was a matter of the past.

Both Government and residents

should be on the alert, or they would find it too late to regret when
the

Communists aucceeded in their ultimate

goal of controlling Hong Kong, the paper said.

It pointed out that the Chines

Communists in Hong Kong were now using

different tactics from those they used

in 1967.

Instead of laying bomba and

creating bloodshed, they now resorted

to smiling faces and maska of

"friendship."

They were making an all-out

effort in the infiltration of workers,

hawkers, school children, intellectual

elements, and members of the sports

circle, the paper pointed out.

They also tried to pull into

their camp those influential members

of the community who were so shortsighte ed that could be easily lured
with

profits.

All these activities were

part of their strategy in controlling

Hong Kong through economic and

political infiltrations, the paper

observed.

評社

一九六七年的一有的人也想要换和浴先战用,大談好,甚到不再歐到人提到

,好大七年畢動的黄岛完全忘坦丁·
刀子殺人不見血,共的类廣新刀乎良,的確然感了不少人,
大饼婺出笑臉,拉乎,到處和人大侠「次道」。常言崗軟
袁傳地,這一小说?先學生,人數殊少,活動的發却大
他們由一九六七年的露出長牙禨-喊打咪毅,代人算,一雙而
學生組織和學生刊物,已被港共嘶業學生听神持,角毛共的
洪宕的敦訊,但可惜到了今天,不少人邾息了警六类
按帆小发而按蓄份小版市事,除非毒听于看不到這些事實。大萬岩 •
他们正如礁班时用一樣,正在「壇」內潑标向各海坑
一些人之所以想了再忘尘,哺因之一★澮代改變了就要‧
名的學把实,屹立添近剛覆滿地,蒐接六其影響。一些學校的
三、這幾年來,馮先濃出了不少躪業學生,渗透到方千
六七年的籌翀,對每一航正常的香港人都是一個
宽裕「圖睹」、「五山」、伽2小威的對抗機米·高博也道
二、小既也是滋於神送拉識的主乎對象之一。推共射小藏自

方起掀起了一场抛動,殺人佈陣,無所不滿,他們公
蹉J‧搵一塲排亂,买了年,直到六八年了這不
一批有背景有後台的橄榄息份子,由六七年五 ..
港阿肯行实。他們公開大誡:「剪不順,便走,工會內部,剿逬堵「孝啊
」、「防間」等活動,無大狼沉,雙五伻逅一九六七年,黃鴻浸奎丁一次的
澅和丶「度好」的ÿ,上部不建於力地在各方面単行
周建樂好為音港,又把香港變成「失語」,望把售,其工會的力量,通過各種「減利」,脱妆工人參加工會,而在
一、沸共主要治力酒是工人。沉幾年來,江洪大力遭美

不要忘記了一九六七年

用激情的「雙期」默阻人,於是在一些知餓衔于选于各概不
玉,灘叔獎出一間「模ㄉ舟子 J灼偶蛋而孔行棘戰
界:取笑面攻時,實在大陸的知津份于受毛謙导 , 但
四、潜共鈡如鉛舟子的控業。最近把年,我略一面對樂

界。濞*活動的携律仍然為老一套:先滲透、姚鲜制。在被肉
五、近年來,共也把神送的牙贴扮約轆實界和吃临

和港人物排行美肌。他們目標指向一些帆光慰肯而* 岸而灌水
六、海大地柠海拼活動,也沒有立纪向上層社會的若干
內近来出现了一些怪乳款,這便是排典活動的結果「,但仍有個別人入

催萬及的

·任何人必須作,五汴事敗取有共时我洶,否則,舷們將
焦,集了正義和自由,躪站起来支持政府,亂才被É抑了下

。而目前的共刀子和人的手助,却會使卡本人庚庫,甚悦在
岸複查亘中被俘斯及过衡而不自知
一九六七年的炸彈公里,容易便人警醒,容易健人挑高警

. 途客制過而来上的涉想,最新的肉根是青联控前开,
己的力量及影響。第一步是进了第二步品控制,由捉濟上粉
纪香港居民以光视共的底掌?.

這此地麻岸青海人,加以感動荆噙-結集自己的力量,擴大自
岩先所有鋪坦活動,邮觋嚷着一個目的,一個殺署要求,

共康富你們安排好的埔幕中决。
有一些人甚至和米共勾勾捕扰,末學去,他們正在一步步林

忘记的。糸·但我们赢就再一次提度一些人:一九六七年的我高是不肯
五年制的排钆不少人是忘記了,有些人甚至不歡喜人提

當前的一些事實作苯如此,一些人在灕共君術前完全

2/ OCT MIZ

Editorials

Hong Kong's ct tus in the eyes of Peking

Wah Kiu Yat Fo (Friday 1/9/72)

It is interesting to note that local residents are now more confident
over the future of Hong Kong and Kowloon after reading the Reuter's
despatch which analyses China's attitude towards the status of Hong Kong
and Kowloon on the strength of the new world atlas published in Peking.

No doubt, it would be encouraging if the real attitude of Peking towards
our status turns out to be what Reuters reported. But it would be
childish if we judge Peking's real attutude just from the new world
atlas. The atlas may be good for some time, but Peking can change its
attitude at any moment.

We are of the opinion that, because of the close relations between us
and the China mainland, it needs Peking's understanding and co-operation
if we want to maintain the status quo of Hong Kong and Kowloon,

Therefore we should try to take the initiative to ensure that China

would understand us and be willing to co-operate with us.

We also believe that Peking would respect the status quo of Hong Kong
and Kowloon if this twin city is made healthy, peaceful and prosperous.

In order to achieve this, we should prepare bold and long-term plans,
stamp out vices and crime, bridge the gap between the rich and the poor,
stabilise our economic situation and instill a sense of responsibility
among residents.

Tin Tin Yat Fo (1/9/72)

Judging from the new world atlas recently published in Peking, there is
indication that Peking is not pursuing a hostile policy toward Hong Kong
and Macau.

That Hong Kong is depicted as "busy place for tourism and trade" on the
atlas represents Peking's acquiescence in preserving the status quo of
the Colony.

Peking's Hong Kong policy seems to center on promoting trade and tourism
here. In fact, the good trade relation between Hong Kong and Chira as
well as the Colony's key international economic status can assure Hong
Kong of a bright future despite any political factor.

Even let alone the vital economic ties between Hong Kong and Peking, the
Colony's status quo is an asset to Peking for it can act as a
thoroughfare with which Peking finds its way into the international
political stage. It is also a buffer area for China in case of any
internal upheaval.

/Though

filet pa

Poke

27/10

Though Peking is at present endeavouring to enlarge its foreign economic
relations with other countries, Sino-British tie is now in its best form
since 1949.

We think "China's needs" do not necessarily dictate the existence of
Hong Kong because, as earlier explained, Hong Kong has its own raison
détre both politically and economically.

It is absurd to say that Hong Kong has no bargaining power vis-a-vio
China. The potentiality of the 4-million-strong population, with the
military assistance the United States and various Pacific countries in
case of need, makes us feel that Hong Kong is not a peaceful city
without any defensive power.

Peking'a new world atlas and Hong Kong

The Reuter cable dateline Peking, August 30 on the new world atlas
published in the Chinese capital was of common interest in many major
right-wing and independent Chinese newspapers on Thursday, August 31. It
was the lead story on the front page of Wah Kiu Yat Po, Kung Sheung
Daily News, Ming Pao and Tin Tin Yat Po.

While Wah Kiu stressed in its headline that the atlas hinted that Peking
would like to maintain the status quo of Hong Kong and Kowloon, Ming
Pao, Tin Tin, Sing Pao and Sing Tao all emphasised that there was no
mention in the atlas of Peking's intention to take back Hong Kong. Sing
Pao added that Peking was believed to be prepared to let the lease run
its course,

Kung Sheung's interpretation reflected in its headline was that the
Chinese Communists no longer distorted the status quo of Hong Kong and
at the same time evaded to mention anything about the lease period.

Both Kung Sheung and Ming Pao also highlighted the belief that Peking
was maintaining a "one China, one Hong Kong" policy for the present.

[

Mr Clark

Mr Evans

rã

Mr Wil£órð

wiljora

CONFIDENTIAL

RECEIVED IN REGISTRY ·

2/ OCT 12

HONG KONG/CHINA AIR LINK

1. On my minute of 11 October Mr Wilford asked to whom

CPA had expressed their claim for sole rights and on what

basis.

2. CPA wrote to the Hong Kong Financial Secretary on

11 August claiming the rights on historic grounds

since

178

D A

CPA had taken over an earlier company which held these

rights. Hong Kong reported this in their telegram No 781

and replied to CPA on 26 August saying that note had been

taken of their position but action must await the negotiation

of an Air Services Agreement with China. Our comment on the

CPA claim is contained in paragraph 3 of Mr Lush's letter of

22 September to Mr Stratton.

19 October 1972

H L1 Davies

Far Eastern Department

Ellark

201

The passage oix is a paraphrase. The exoci formula wred by

૯

Miñones

To mi Blunck appears in paragraph 2

[Feogo] of his lette of 26 August.

CONFIDENTIAL

Ri. Evans

२.

20 October, 1972.

CONFIDENTIAL

Mr Clark Mr Wilford

Mr. Stack Mr. Davies

JFED A.R.

Mr Logan

CC ALTO

(for reply to The

Wilford's engaing)

COMMUNICATIONS BETWEEN HONG KONG AND CHINA

1. Mr Royle bas enquired what the present position is

regarding the proposed air shuttle service and the proposed

telex link between Hong Kong and Canton.

HONG KONG/CANTON AIR LINK

This question must be considered in the context of the

inter-governmental Air Services Agreement which we hope to

negotiate with the Chinese in the near future. A preliminary

meeting was held between DTI officials and the CAAC Delegation

which visited the United Kingdom in September. The DTI team

received the firm impression that the Chinese wanted an Air

Services Agreement but that they were not prepared to discuss

substantive points during the preliminary meeting.

3. The Hong Kong-Canton link is not the first priority for

us in negotiating an ASA. Our first priority should be a BOAC

route to reking, although BOAC's first preference is to enter

China via Hong Kong. Whichever way one considers it Hong Kong

considerably complicates the question of the Air Services Agreement.

First the Chinese regard Hong Kong as an integral part of China.

The CAAC delegation told the DTI that in their view we would have

two points in Chin, ie Hong Kong and another point.

CONFIDENTIAL

/discussions

CONFIDENTIAL

to whom and

mwhat

Das is

mi.

Plane

lis formed.

4.R.

discussions with the Canadians the Chinese have said that

routings between Hong Kong and points in China would be regarded

as internal routings. We shall clearly face problems on this

point when negotiations begin.

There are also internal Hong Kong complications. Cathay

Pacific Airways (CPA) have claimed sole rights for any direct

service between Hong Kong and China. Hong Kong Air International

(Sir John Clague's helicopter company) has also formally

expressed interest in a route between Hong Kong and Canton.

The DTI will have to sort out the respective claims.

5. The DTI in consultation with Aviation and Telecommunications

Department are preparing a draft Air Services Agreement for

transmission to the Chinese in the near future. They cannot yet

forecast a date when substantive negotiations will begin.

TELECOMMUNICATIONS LINK

6. The General Manager of Cable and Wireless in Hong Kong paid

a very successful visit to Canton at the invitation of the Kwang-

tung Administration of Telecommunications (KAT) in June, The

two sides agreed to consider the installation of a cable system

between Canton and Hong Kong, each side to carry out the works

on their own side of the border. KAT said that they intend to

route all Kwangtung international traffic via Hong Kong. They

envisaged that the cable would also carry telex and leased

circuits. They opposed Cable and Wireless's suggestion for a

tropospheric scatter or microwave link either on the whole

Hong Kong/Canton stretch or on the Hong Kong/Lowu stretch,

insisting (presumably for security reasons) on a cable all the

way. Under present traffic conditions the new cable will be

/uneconomic

- 2 -

CONFIDENTIAL

uneconomic for Cable and Wireless but they believe that it is

a good opportunity to become involved in Chinese future overseas

communications activities. The Hong Kong Telephone Company

have already agreed to grant Cable and Wireless a sub licence to

operate the cable. Cable and Wireless have now formally informed

the Chinese that they are prepared to go ahead with the proposal.

The Chinese have not so far formally responded. The Deputy

Director of the KAT will visit Hong Kong with some of his staff

for seven days from 1 November, to visit Cable and Wireless

installations in the Colony, including their earth-satellite

stations.

They will also presumably continue their discussions

about collaboration with Cable and Wireless.

Aviation and Telecommunications Department and Hong Kong

and Indian Ocean Department concur.

H L1 Davies

11 October 1972

cc Mr Hervey

A&TD HKIOD

Far Eastern Department

Gellark m/w

- 3 -

CONFIDENTIAL

Guf the Off

SAFE

CATHAY PACIFIC AIRWAYS

LIMITED

Union House. 9 Connaught Road, Hong Kong

14/8

IRA 6 see 'RÁ

2 SCR for filing

Lreceive to me

The Hon. C.P. Haddon-Cave, J.P., Financial Secretary,

Colonial Secretariat,

HONG KONG.

₤14/0

DES

7/934/49(5

Member of the Swire Group

P. O. Box 1

Gabler: AIRGATHAY

Telex: xx 3106

Answer Bach. SWIRE HKG Telephone: H-a50011

11th August 1972.

wey

Dear Philip,

-I confirmed

(a)

(b)

(c)

Alr Services to China

ula

I refer to my letter to you of 1st May, at which tins

that in our view any traffic rights which may becons available to a
U.K./H.K. carrier for the operation of regional air services between
Hong Kong and Canton or between Hong Kong and any other points in China
should be available to Cathay Pacific, in that historically we are the
U.K. and Hong Kong designated carrier for those routes;

that we have a positive interest in any such rights should they become
available; and

we do not believe that our operations to Taiwan should be considered as
preventing C.P.A. from operating any available China rights.

Some months have passed since I wrote the letter referred to above, and
it now occurs to me that it may be desirable for us to more formally
record our interest in some way, such as making formal application to
the Hong Kong Licensing Authority for the appropriate licence.

ART REGIST

I would appreciate your guidance on this point,

REGISTRY

Yours sincerely,

ARD LETTER

CONFIDENTIAL

30.659.1A

DATE JEL 127

c.c. Director of Civil Aviation.

DRYB.JG

D.R.Y. Bluck Managing Director.

DES

ዶ.

CONFIDENTIAL

118

PRIORIT

CYPHER/CAT A

FM HONG KONG 261380 2

CONFIDENTIAL

REC > IN

142

1 SEP 1972

MUAY |301||

COPY

TO PRIORITY F C O TELNO 781 OF 26TH AUGUST, 1972. INFO ROUTINE PEKING
AND B CARFE.

11D

MY TELNO 735.

AIR SERVICES TO CHINA.

.CPA (BLUCK) HAVE NOW WRITTEN FORMALLY CLAIMING RIGHTS TO ANY REGIONAL
SERVICES BCTVEEN HONG KONG AND CANTON OR ANY OTHER POINTS IN CHINA AND
EXPRESSING A POSITIVE INTEREST IN SUCH RIGHTS SHOULD THEY BECOME
AVAILABLE. THEY SAY THAT HISTORICALLY THEY ARE THE UK AND HONG KONG
DESIGNATED CARRIER FOR SUCIL ROUTES, STEMMING FROM THEIR PURCHASE OF
HONG KONG AIRWAYS FROM BOAC IN 1959.

THEY ALSO SAY THAT THEY DO NOT BELIEVE'* THAT THEIR OPERATIONS TO TAIWAN
SKOULD BE CONSIDERED AS PREVEUTING CPA FROM OPERATING ANY AVAILABLE
CHINA RIGHTS.

2. WE HAVE AT THIS STAGE DONE NO MORE THAN ACKNOWLEDGE THIS
COMMUNICATION AND HAVE INFORMED PLUCK THAT THE SUBSTANCE IS PEING PASSED
ON TO YOU.

fco-21-1019-relations-between-hong-kong-and-china — Page 5

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