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is being directed the Bank of China and the

communist-controlled Federation of Trade Union H.Q.

and the Workers Club; and

(b) to bring the Commando Carrier "Bulwark" to

Hong Kong.

Both these requests were approved.

Attacks on our posts in Macag, Poking and Shanghai.

12.

Soon after the disturbances began in Hong Kong, the British

Consulate in Macao was the target of repeated demonstrations and

the staff have been compelled to vacate their quarters for a

hotel.

13. After the Peking statement of 15th May similar demonstrations

wore mounted against our offices in Peking and on the 16th May

the office in Shanghai was invaded by a mob and sacked, On the

22nd May the Charge d'Affaires in Peking was informed that the

Chinese Government considered that the 1954 Agreement was annulled

and demanded that the Shanghai office should be closed within

24 hours.

The apparent parallel with Macao

14. There is an apparent parallel with events in Macao which

have been widely studied in pro-communist circles in Hong Kong.

There too the crisis began with a local dispute (in the case,

however, badly handled by the police) which led to "demands"

by local pro-communists which were endorsed later by the

Chinese authoritics. The Portuguese reacted by trying to

appease the local pro-communists who only stepped up their

demands. Internal and external pressure was applied, including

the implicd threat of Chinese military action, until the

Portuguese backed down and accepted the Chinese demands in

The Chinese were entirely intransigent and seemed

determined to enforce their will and to demonstrate that the

Portuguese were remaining in Macao only on sufferance and

subject to them falling in with Chinese wishes on all points.

full.

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