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5a Although the Governor is reluctant to take measures against the Press (see paragraph 4 of his telegram No.677) Emergency Regulations have been approved by Executive Council, but not yet made, providing powers for dealing with inflammatory posters in public places and for the temporary closing down if necessary of printing presses. We agree tha if a stage is reached at which action against the Communist press has to be considered, this would be a much swifter and more effective method of action than prosecuting them through the Courts. If there were a substantial deterioration in the present situation, we might well have to contemplate action on these lines.

6. The Governor has already been authorised to close selected places if necessary, by means of closed area orders as proposed in his telegram No.662 paragraph 3.

This power has not yet been used in view of the present lull.

7. The presence of U.K. military forces in Hong Kong is one of the basic factors in maintaining public morale, and very directly also the morale of the Police. It would have a most adverse effect here if it became known that we intended to withdraw a major unit. We feel therefore that this decision should be shelved for the time being.

8. Apart from the suggestion in paragraph 7, probably the most helpful contribution we can make from London at the present moment is to repeat H.M.G.'s support for the Hong Kong Government in their measures to maintain law and order; and to do this in a way which will convince people here that we intend to stay in Hong Kong.

(Passed as requested and advance copies to

Sir Saville Garner, Mr. Wilson and

Mr. de la Mare).

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