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the form of indiscriminate bomb placing, the murder by fire of a popular
Chinese radio personality and the earmarking of six prominent Chinese
citizens for assassination. Although the development reflects the
bankruptcy of the Communist cause, it places a considerable strain on
the police, who have throughout acted with great restraint, and on the
Service bomb disposal teams.
8. The disturbances do not appear to have been directly instigated
by Peking but rather to have been the result of local initiatives taken
in response to the revolutionary atmosphere on the mainland and a local
desire to achieve in Hong Kong a Macao-type situation. Nonetheless, the
C.P.G. have given extensive propaganda support to their Hong Kong
compatriots, and have assisted their campaign directly in such ways as
supplying strike funds and indirectly by permitting the border incidents.
But there is no indication that they propose military intervention or the
denial of food supplies to Hong Kong. Much of the Colony's food comes from
China (beef 65%, pork 87%, eggs 931%, vegetables 60%), and though supplies
have been erratic and often reduced, that is due to the disturbed political
state of Kwangtung Province and to temporary events such as border closures
and bad weather. Water has not been supplied but within the terms of the
agreement with China supplies are not due to start again until 1 October
and there is no evidence to suggest China proposes to default. In any case,
however, thanks to recent rains, the Colony has full reservoirs, sufficient
to maintain a limited supply until the end of the next dry season without
Chinese assistance. Nonetheless, contingency planning is proceeding for
alternative supplies of both food and water.
9. Hong Kong's economy may suffer some damage as a result of Communist
The extent cannot be clearly seen at the present time.
confrontation.
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/10.