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Simultaneous crisis, 1976

1974-The Chinese navy successfully occupied the Paracel Islands, which were effectively controlled by South Vietnam. Meanwhile, the British Labor Party tried to withdraw from the EEC but failed. This came as a shock to the Commonwealth countries.
1976-Britain ended up applying for bailouts to the IMF because of its chronic high welfare budget and falling productivity, and the Labour party was hit hard.
On September 9, Chinese President Mao Zedong died. While the Chinese people were in shocked, power struggles began to take shape inside the Communist Party of China. Radical hardliners push for invasion of Hong Kong to raise their position. At the end of October, tens of thousands of Chinese People's Liberation Army invaded Hong Kong across the border. British troops in Hong Kong resisted but soon surrendered. When Hong Kong was occupied by China, the British Labour Cabinet faced tremendous criticism.
The embattled Labour cabinet chose military action as the last resort. And they strongly demanded military aid from Canada and Australia to strengthen solidarity among the Commonwealth countries.