During the Hongkong riots and anti-British campaign, practically the whole of the communist financial network, ranging from stores which deal oxolusively in chinese products to communist-owned banks, had been geared up to spearhead the "revolt".

But on the other hand the communist leaders realise the crippling loss of earnings that would result from a takeover of Hongkong. Furthermore the many economic benefits that Peking derives from Hongkong would be lost or greatly diminished if it were part of Communist China.

It has been evident from the violent anti-British campain during t the past 2 months or so, the communist "hate machine" is well equipped to carry out its war of words against the Hongkong Govornment. Millions of dollar have been sunk into the communist-owned newspapers and bookshops which present a bold communist front in the Colony. Thero are always lavish communist films to see. The communist cinema network comprises South China, Astor, Ruby, Nanyang, Ko Shing and Silver Theatres. Even the young are not free from the assault of Mao's thoughts. They face it at several communist schools in Hongkong. Even if the lessons are non-political, students can get together with their teachers for a friendly chat and a reading from Mao's Quotations. Parents who have no wish to involve themselves in politics still send their children to those schools because they offer an efficient education, strict discipline and modern conditions in contrast with some of the pooror schools. When it came to strikes and clashes with the police, the communists make use of the 65 communist unions with a "paper" membership of 100,000 belonging to the Hongkong Federation of Trade Unions as its front-line men. Six times during the month of June the "Anti-Persecution Struggle Committee" had called a general strike and in every occasion the workers of longkong had ignored the communist call. Despite intensive proporation, a loud publicity build-up, intimidation of violence on workers who refused to join in their political strike, and at a later stage, the expenditure of some HK$ 20 million as inducoments to strikers in almost every trade, ranging from public transport and essential services to textile factories, the communist never not beyond the stage of a curtailment of transport servicos. Even this, only a handf:1 of the faithfuls of the Kowloon Motor Dus Company together with some of tho workers who were still permitting themselves to be bribel or intimidatou into going along with the communists responded. In the textile industry they did call strikes at the Nam Fung Toxtile, Central Textile factories in sun Wan and Wyler Textile factory in Kowloon on 29 May and the Regi Sun Textile, and Tai Tong Textile factories in Kun Tong on 25 June. But they were completely robuffed by the "neutral" workers and our members under the lealership of CINGUT. Out of a combined labour force of about 7,000 from the 5 mills, only About 600 (all bribed with huga sum of money inducoments ranging from HK$300 to HK$500/-) responded to the communist political strike.

Among the reasons for its failure were the fact that the communist sinister plot to paralyse Hongkong transport and other industries through brikes and intimidations XXXXXXXX* had been badly exposed by the Work Security Committees formed by CIWGUI and other IKTUC affiliatod unions and the Government together with employers' "get tough" policy in dealing with the communist trouble-makers. One thing has becomo abundantly clear se a result of the acries of pointless communist interruptions to the ordinary life d Eongkong. The local communists have not only lost goat public sympathy but alno anger the ordinary ran, vomen end child in the street who only wanrie a nomal livelihood. During the past 2 months it looked so if these laws been an

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