252

CONFIDENTIAL

INWARD TELEGRAM

TO THE COMMONWEALTH OFFICE OPY FOR REGISTRATION

(The Secretary of State)

FROM HONG KONG (Sir D. Trench)

Cypher

D.

21 June, 1967.

12452

R.

21

IMMEDIATE

CONFIDENTIAL

No. 875.

Addressed to Commonwealth Office. Repeated

Peking No. 348.

"Political Adviser Singapore

11

tt

No. 187.

iya

Washington No. 191. (Please pas RECEIVED IN

PRIORITY to all).

ARCHIVES No. 63,

see

M.S. AWNEY:

238

246

My telegram No. 854.

SITREP as at 21 1900.

22 JUN 1967

74/LA 1/17

The situation has remained quiet but there are indications that a widespread transport strike is being planned for the near future. Posters continue to appear but the only difficulty has been with those put on goods waggons by C.P.G. railway staff. The body of a second man has been found in the Kowloon gas works. Stencilled anti-British pamphlets have been posted to local clerical staff in Government offices.

2. There are numerous reports of an impending major transport strike. Offers of compensation are being made to those prepared to come out, both during the strike and after if they are dismissed. Such compensation is already being paid to many who have been dismissed for their part in recent strikes. Great emphasis is being laid on this financial backing. No firm date for the strike is yet known. It is hoped that if both Government and employers stand firm there will not be a complete disruption. However the Communists are strong in the transport unions particularly in Kowloon,

3. Posters continue to appear on buildings and to be removed but without any repetition of last week's violence. A Hong Kong Government locomotive used for shunting waggons across the border into and out of China has been covered with posters and two large pictures of Mao. The drivers of this engine, who work in shifts, have been made to join in chanting of slogans and have been warned not to remove posters. Waggons carrying mail, livestock and vegetables from China into Kowloon have also been festooned with posters, portraits and straw effigies. The General Manager of the railway has writtent to the authorities in Canton seeking assistance. This is unlikely to meet with any constructive response and other measures are being examined. A decision to remove all these posters, etc., could lead to an interruption of supplies which might cause difficulties (my telegram 851 refers) particularly as delivery of the extra quota of water is due to begin on 26 June and this too could be stopped in retaliation.

4.

The second body found on 17 June in the Kowloon gas works had been there since the incident on 8 June. There is no evidence) of foul play. The Communists will of course seek to exploit this case as well as the other two deaths (my telegram 831). So far

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