Conclusion

4. We consider that the situation in Hong Kong remains

potentially dangerous. The Chinese Government are still

strongly committed to forcing the British to accept their

"demand!!. By firm and unprovocative handling of the

sitution the Hong Kong Government has managed to win

the first round and the degree of public support for the

firm action by the Hong Kong authorities has probably

surprised and dismayed the pro-communist leader hip. It

now appears that the pro-communists are reviewing their

strategy. It seems likely that they intend to embark on

a long term confrontation, with the authorities usin

industrial action as their chief #OADON.!

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