Mr. de la Mare

SECRET

2294

(152)

Hong Kong

Hong Kong telegram No. 699 attached reports

that the situation in the Colony remains highly

inflammable. As expected, temporary stoppages

continue in the public services and gangs of

demonstrators are forcibly resisting efforts by

the police to remove inflammatory posters and to

eject them from their workshops.

2.

Yesterday, I submitted a fuller account of the

present situation in China and, more particularly,

its implications for Hong Kong. All I would add

here is that paragraphs 6 and 7 of the Governor's

telegram support our conclusion that the main trouble

lies with the rank and file in Hong Kong who are

responding more or less spontaneously to the Cultural

Revolution atmosphere in China and the violent

propaganda being put out from Peking. Peking itself

does not at present seem to be trying to force the

issue. For over & week now they have not referred

to the "five demands". This is very different from

the action they took against Macao when they insisted

upon the Governor accepting their demands by enforcing

/a boycott

SECRET

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