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fiction that Communist action is crippling the working of the port. The

Communists have made a particularly strong effort in the sphere of shipping.

Considerable pressures have been applied to the Chinese crews of British

ships which call at Chinese ports and some vessels have had to sail with

men short.

17. Total bank deposits at the end of June were 15% below the total af the

end of December. But a lot of this reflects a typical Chinese preference

to hold their money in time of crisis and comparatively little is believed

to have left the Colony. July and provisional August figures show a pronounced

decrease in the rate of withdrawals and even some signs that funds are returning

to the Banks. There has been some reduction in the inflow of capital from

abroad especially from South East Asia.

Hong Kong Department,

13th December, 1967.

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