1

CONF ID ENT TAL

going on strike during the disturbances in the Colony

last year.

The lack of success so far achieved by these

delegations is having an adverse effect on communist

morale, especially since three trade unions have recently

announced that strike pay to their members is to be

terminated. The Kowloon Bus Company has been the primary

target of these delegations. There are clear indications

that the local communist leadership does not seek an

open clash with the authorities but it may have increasing

difficulty in controlling the more militant elements among

its supporters as time goes on, The Hong Kong authorities

attech considerable importance to holding out against

requests for reinstatement, particular y since it is inown

that any success achieved in this sphere would be used by the

communists in an attempt to regain control over the

departments and services concerned,

Prison Visits and air, Grey (Reuters' Correspondent in Peking)

Efforts by the British Chargé d'affaires in

3.

Peking over the past few months to obtain access to Mr. Grey,

Reuters' correspondent in Peking, who has been under

house arrest there since last July, have met with very

little success, The one occasion on which Sir Donald Hopson

managed to see Mr. Grey (23 April) was made possible as

the result of arrangements made in Hong Kong for special visits

to be paid by local NCNA officials to communist journalists

and press employees imprisoned there for various offences

committed in connection with last year's disturbances,

These "special visits" were in addition to the normal

CONFIDENTIAL

/monthly

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