of employees has improved. (HKSU) has had little effect.
2. 18 July.
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Food supplies are normal.
The first day without mob violence for some time. There were a total of five bombing incidents with only one minor casualty. At Lo Wu, unarmed civilians and farmers retying from their land in British territory threw stones, shout slogans, broke notices and put up inflammatory posters on our side. The police carried out five raids in the urban areas, arresting seven people, and also cleared posters from outside Communist shops and a cinema. Two British owned ships sailing to Whampoa were delayed by reluctance of the crew to risk an unfriendly reception, although another British ship did sail there. The Bank of China has set up a barbed wire entanglement on its roof, presumably as a defence against helicopters. (Some water tanks may also have been erected which makes the bank liable in law to having its supplies cut off).
3. 19 July.
Again a quiet day with two unsuccessful incendiary and three bombing attacks. One bomb thrower was hoist with his own petard and is now in hospital under guard. He may provide a lead on the bomb throwing organisation. There was a repetition of harassment at Lo Wu. The police carried out three raids and evicted a CPG shop from its premises in a resettlement area. 23 people in all were detained. The bus and tram situation shows further signs of improvement. Three more ships delayed sailing to Chinese ports, but the seamen's recruiting office is continuing
CONFIDENTIAL
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