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3. The public instructions which Peking is giving to the pro-communists in Hong Kong do not appear to have altered since the "People's Daily's" editorial of 3 June (attached)

which called on the people of Hong Kong to mobilize their

forces against the Hong Kong Government.

This editorial

and subsequent Chinese propaganda suggest that Peking's intentions are to carry out a long term campaign against the Hong Kong Government for which the first stage would be the formation of a "mass bag (1.e. public support) which the first round of demonstrations in Kay shoved to be sadly lacking. The danger is that, even if these are the orders

coming from Peking, local extremists in Hong Kong may well

take more violent action which, in present circumstances in China, would almost certainly then be backed by Peking. The resultant spiral could well commit Peking to more positive

action then they seem to contemplate at the moment.

Copies to:

Mr. Smart, News Department

Mr. Brewer, J.R.D.

Mr. C. Wilson, J.I.R.D.

(E. Bolland)

16 June, 1967.

Mr. Butler, P.U.S.D.

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Mr. Carter, D.T.D., C.0.

CONFIDENTIAL

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