CONFIDENTIAL

INWARD TELEGRAM

TO THE COMMONWEALTH OFFICE (The Secretary of State)

FROM HONG KONG (Sir D. Trench)

Cypher

D. 26 May 1967 R. 26 **

0305Z

CONFIDENTIAL No. 701

161

RATION

MAY

1967

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10

2

3

4

HUB/17

Addressed to UKMIS Geneva (for Jones) No.M.346

Brussels (for Martin) No.M.347

Washington (for Hermann) No.142

11

Repeated

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HONGAID London (for Sedgwick) No.M.348 (C.0. please pass to all)

From Sorby.

Regret very much not able to keep you fully

informed during recent disturbances. Following is general background information on which you may draw in reply to questions.

20

Disturbances in Hong Kong engineered by local initiative of radical elements in Communist organisations as an overspill of cultural revolutionary enthusiasm.

3. Authorities with overwhelming backing of vast majority have succeeded in reasserting law and order and has greatly weakened power of these radical elements. Overt demonstrations have not occurred for two days and chance of recurrence of violence seems small.

40 Everything now back to normal. Banking system steady. Gold price dropped 8 dollars today (before disturbances 282 dollars per tael, yesterday 282 dollars per tael). Tourists continuing to pour in. Confidence is returning to Hong Kong.

5. Long term economic effect of disturbances too early to judge with precision yet, but during the disturbances no hold ups in Portuguese warehouses, official documentation, manufacture. Exports and imports have continued normally throughout.

6. Extent of damage very few vehicles burnt, windows of a few branch banks in Kowloon damaged, a few bruises and bloody pates. Only three (repeat three) bullets fired. The only death was caused by rioters. Three nights of partial curfew in one manufacturing district of Kowloon, one in the business district of Kowloon, one in the whole waterfront of Hong Kong Island. At the height of demonstrations some two to three thousand well-disciplined marchers carried petitions to Government House until a police ban stopped them. Bus services on Hong Kong Island stopped for one and half days only. Seems

very

CONFIDENTIAL

ena

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