CONFIDENTIAL

5. The Communists are now fully committed to the strike and will spare no efforts to spread it. Intimidation of right- wing and neutral workers can be expected. Providing we can reassure the public of our ability to protect them against threats and can maintain essential services, there is a good chance of breaking the back of the strike.

6. As of 1500 hours, the situation at Sha Tau Kok appears to have returned to normal.

(Passed as requested)

(Passed to DSAO for Resident Clerk and advance copies

to P.S. to Commonwealth Secretary and Messrs. de la Mare,

Bolland and Wilson)

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