9.
which purported to be union headquarters or commercial houses, and they are clear evidence that the Communists have been preparing in depth for insurrection in the colony.
The extent to which the initiative in creating the disturbances in Hong Kong is being taken by the Hong Kong Communists themselves is not clear. They are, however, being given full propaganda support by Peking and they are also receiving substantial financial assistance. The All-China Federation of Trade Unions gave HK$ 10 million (approx. $A. 1.5 million) to Communist elements in Hong Kong in June, and a further HK$ 10 million in July. There have also been disturbances on the border between the mainland and the colony which have been instigated by elements on the mainland side. Whether Peking is planning other, more direct, forms of intervention in Hong Kong is however at the present time difficult to predict.
Meanwhile it should be said that the British authorities have dealt with the situation with wisdom and efficiency, and there is no lack of confidence in their ability to deal with the internal communist threat. The past months in Hong Kong have been a period of strain and anxiety for the citizens of the colony, and they are deserving of our sympathy. Extremist elements have received little support from the Chinese people in the colony, who clearly have no wish to exchange their present circumstances for the irrational tyranny of Mao. The Hong Kong police force, consisting largely of Chinese, has dealt with the disorders with great firmness and skill and the courage and discipline of its members deserve the highest praise.
I need hardly say that Australia has a deep interest in the maintenance of British rule in Hong Kong.
Communist China
There will not be time this evening to give an account of the complex and, in some respects, confusing reports of the situation inside mainland China. This situation is under close and constant study by us, but I doubt whether this is a useful time for making pronouncements on it. There is certainly evidence of widespread resistance to the Maoists, particularly in central and southern China, but from available information it is difficult to assess the strength of the resistance. It seems clear, however, that the struggle between Maoists and anti-Maoists has led to deterioration in economic and social conditions in many areas. At the same time China's foreign policies, at any rate in their expression, have become more extreme.