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CONFIDENTIAL

the matter as anything other than a purely local affair.

The incident formed the subject of discussions on 8 June

between local representatives of the NCNA and the

Political Adviser to the Hong Kong Government. The

discussions were not at all acrimonious. From the se

discussions it appears that the matter has been taken

up by the "appropriate Kwangtung authorities". The NCNA representatives have given the impression that the

measures taken to strengthen British forces in the border

area as a result of the incident on 29 May have angered

local peasants thereby creating difficulties for the

Chinese border authorities. Peking has asked whether

these measures could now be modified in order to improve

the atmosphere, Hong Kong is consideting this suggestion.

Hong Kong Departant,

June, 1968

CONFIDENTIAL

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