The exact quote:
Not necessarily violence. I think the bigger implication was whether the British were willing to risk losing everything (businesses, etc.) by maintaining a sovereignty claim.
As you can see in the link above (and there are others like it for those that have a distaste for CNN), UK never had any illusions about keeping HK and actually the Falklands war did have an indirect impact on he negotiations.
What's more interesting is that Zhou Enlai always had a lot of foresight into how he could use HK to the PRC's advantage. First, they never invaded HK in the immediate aftermath of the war. Then when the British had considered giving HK more political freedom in the 50's, Premier Zhou could foresee how this could be used as a lever to be used against the PRC and strongly advised against it. When the leftist riots gripped the city in the 60's, he actually moved against them. He also guaranteed water and food delivery to HK even when PRC was poor. This guy had a 50 year plan, amazing...
CNN said this on the point of democracy:
“very unfriendly act,” premier Zhou Enlai reportedly told British officials in 1958. Another Chinese official in 1960 threatened potential invasion if the UK attempted to introduce greater democracy to the colony.
The full background is actually this (
):