SECRET

Peking made a donation of HK 10 million dollars to All Circles Anti-Persecution Struggle Committee (ACAPSC). Also on the 13th June the People's Daily carried a 'commentator' article which condemned the oppression of the "British Imperialists" and called upon people in the

"enemy camp" to repent and redeem their crimes,

20

There was reliable information on the 12th June, that senior local Communists in the labour field were dissatisfied with the lack of support from the C.P.G. (absence of any real pressure on Hong Kong from the mainland) in their confrontation. They also lamented their inability to involve more workers directly in strikes because of the fear of dismissal and it was felt that the poster campaign had been a failure because of poor planning and organisation. On the brighter side, from the Communist viewpoint, they agreed that the New Territories offered tremendous opportunity for furthering the confrontation, quoting alleged reluctance on the part of the police to intervene in political activities. Despite the difficulties they were convinced that they must continue the struggle until final victory.

3. The presentation of 10 million dollars from China, the statement by the C.P.G. Foreign Office spokesman and the commentator article in the People's Daily, will reassure, at least the local militant Communists, and make them more determined than ever to succeed in their struggle. In particular the 10 million dollar gift from China, will provide adequate financial resources, at least for the time being, and this could mean that a fresh round of token strikes, may start in the near future. There is little doubt also that the virulent anti- British propaganda will continue. The current theme is a call for the local population to make the British atone for their suppression during past hundred years and bring about, at an unspecified date, their eventual eviction from the Colony,

40 Whilst it is clear the Communist leaders are conscious of the absence of any widespread following in the population, there is still a demand amongst the more militant cadres for direct action. To this end there are plans to form "small fighting groups" for aggressive action against Government supporters and other tasks such as the protection of posters by the use of strong arm tactics. Therefore, although the situation on the ground has been relatively quiet over the past week and the Communists have failed to gain much support for their attempts to engineer strike action, there is no room for complacency.

5.

Peking, of course, still holds the key to the present situation in Hong Kong. Whilst the propaganda which has originated from China over the past week must have given some encouragement to the local Communists, the tone of the statements and articles issued from Peking indicate, yet again, that they must be prepared for a long hard struggle and can expect only financial, moral and propaganda support from China.

(Passed as requested)

(Advance copies to DSAO for Messrs. de la Mare, Bolland,

Wilson, Denson and Private Office (Commonwealth

Secretary)

SECRET

/Distribution:

Page 30Page 31

Share This Page