Background
As the Communists drew near to a victory in early 1949, there were fears that Hong Kong was going to be invaded by the Communists. The British Government was determined to keep Hong Kong as a capitalist outpost within a communist sphere of influence, though the memories of the Berlin Blockade and the perceived antagonism of communist governments was still fresh in their mind. The garrison was reinforced and plans of emergency evacuation to Australia were made. However, the People's Liberation Army were ordered to stop advancing at the Shenzhen-Hong Kong border, and Hong Kong remained a British colony.
Hong Kong was a valuable trade centre at the mouth of China, and hoped that by retaining this connection doing business with the new government in Beijing would be easier. To give up Hong Kong to the Communists without a fight would be seen as a national weakness in the face of the growing communist threat in Europe and Asia, especially the Emergency in Malaya. Debates did take place during the 1950s at the British Parliament in Westminster in which it was discussed that Hong Kong would have to be handed back to China if the colony's entrepôt trade could not be maintained. The people were outraged at any suggestion of this, so the Government of Hong Kong became committed to turning Hong Kong into a manufacturing centre.
Read more about this topic: 1950s In Hong Kong
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