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to a round of reprisals culminating in (a). The best

step seemed therefore to be (c). However we decided

not to do this at the moment, having in mind the overrid-

ing need to keep down tension with Peking as much as possible because of its possible repercussions on China's attitude towards Hong Kong. If Peking should take further

hostile action against our Mission or its officials we

would then consider, in the light of the circumstances, what action to take, including measures against the N.C.N.A.

3. After the intolerable harassment of the Consul and

his staff in Macao they were withdrawn to Hong Kong on Thursday, 25 May. The Consulate has been temporarily

closed. Its future will be decided when we see how the

situation develops.

40 Latest reports from Hong Kong indicate that the Governor remains firmly in control. The only developments over the weekend have been the continued brief stoppages in public

utilities. Present indications are that these will continue

for some time. The local Communist leadership seems to be

engaged in rethinking its tactics.

that at present Peking wishes to force us out of Hong Kong.

But we do not think

FAR EASTERN DEPARTMENT

30 May, 1967.

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