SECRET

40 The Left wing and Government now seem to be set on a collision course. Even the incidents which have occurred so far could have a grave effect on general confidence in Hong Kong; and they are clearly as little in the interests of the C.P.G. as of ourselves. We have been trying, through the few channels at our disposal, to make this point to local Left- wing leaders. But their freedom of action is very restricted. In the circumstances, you may wish to consider the possibility of making early representations to the C.P.G. in London if not in Peking, to ensure that they are aware of the very serious implications of the situation as it may be developing. I can see that there might be technical difficulties in finding a peg on which to hang a discussion of this sort, but there seems a serious danger that unless the local Left wing are directed from a very high level to pursue a more moderate policy, things may get out of hand.

5.

An approach might take the following lines:-

(a) The Hong Kong Government much regret the disturbances

that have taken place in Hong Kong during the past week. The C.P.G. should know that there is no change in Hong Kong Government policy towards Left-wing labour organisations. The policy is now, as always, to maintain the law impartially and fairly. Govern- ment realise that in some cases workers may well have legitimate grievances. As the Royal Interocean Lines dispute showed, there are ways of remedying these by action within the law.

(b) But if the workers break the law, the Hong Kong

Government must enforce the law, Hong Kong depends for its existence on stability and confidence. Disorderly action by labour here is bound to attract world attention and to damage, possibly permanently, Hong Kong's economic prospects for the future. The interests not only of Hong Kong Government but of the workers of Hong Kong and possibly also China will be seriously affected.

(c) For these reasons it is impossible for H.M.G. to

acquiesce in a situation comparable with what has recently developed in Macao. Unless more effective control can be exercised over the way in which Hong Kong workers express their grievances, there are dangers of a collision which could destroy Hong Kong as an economic entity and also have serious inter- national repercussions.

Distribution

(Passed as requested)

Sir A. Galsworthy

Mr. Hall

Mr. Carter

Mr. Russell

-

Mr. Jerrom

J.I.C. External Distribution Copies also sent to:-

Foreign Office (F.E.D.)

#t

**

SECRET

Mr. de la Mare Mr. Denson

Share This Page