SECRET
Hong Kong telegram No. 1854 to Commonwealth Office
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(f) The continued anti-British propaganda in the Communist Pres
with alarmist reports concerning the supply of salinated water and allegations that Europeans in the peak area only receive fresh water. Prominence was given also to the effects of local devaluation. Both a statement issued by the Kwantung Provincial Support Committee denouncing Government, pledging support and demanding acceptance of the original confrontation demands, and the CPG protest were hailed prominently as further indications of support from China. However, since
8 December bomb incidents have been ignored, and apart from the Government release carried by an evening newspaper, there has been no mention of the murder of the police constable.
2. Police action continued against Communist targets mainly connected with bomb incidents. A number of persons were arrested for possession of 'hoax' bombs. Some twenty persons have been arrested in connection with enquiries into the murder of the former police constable on 9 December. These include two former members of a Communist guerilla unit, active in China during World War 2, one of whom is the Chairman of a Communist Stone Masons' Union.
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3. The manner in which the two themes of salinity of the local water supply and the devaluation of the Hong Kong dollar were adopted simultaneously by so many Unions suggests that, although also a major theme in the Communist Press, some measure of control is being reasserted over activities in the labour field. These themes are, course, in line with the Communists' long term aim of exploiting alleged social and economic grievances to win the support of a wide section of the public. The arrangements to re-open the Chung Wah School indicate that, at least overtly, the students will merge into the Communist schools providing the accommodation, apparently in an effort to avoid provoking Government into taking further action against education circles.
4.
The involvement of former guerillas in the group believed to be responsible for the recent attacks on Police Officers could, of course, provide the training and experience necessary for this type of activity. Investigations are continuing, and so far there is nothing to indicate whether or not this group has been operating on its own initiative. The change of attitude in the Communist Press towards acts of violence, which has been apparent since the return to the colony, from China, of a senior new China News Agency official on 7 December, suggests that he may have brought instructions that emphasis should no longer be given to this aspect of confrontation. If this continues, it must have some deterrent effect on local militant Communists, but it will require some time, and perhaps more positive steps before thereis any end to violence.
Foreign Office please pass Washington as my telegram No. 407 and Canberra as my telegram No. 153.
Sir D. Trench
FILES
[Repeated as requested]. [Passed Cabinet Office].
H.K. Dept.
J.I.R.D.
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J.I.P.G.D. O.P.A.
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