CONFIDENTIAL

2

The demands were incorporated in a statement by the

Chinese Government handed to the Chargé d'Affaires in Peking

on 15 May and then published. No reply has been made in

any form to the demands. The campaign against the

Hong Kong Government was prosecuted at first by means of

demonstrations and inflammatory posters which gave rise to

incidents and some work stoppages. A general strike was

called and had some success in the transport field, but in

general did not cause serious disruption, It was followed

by a four-day stoppage of food supplies from China and an

attempt to cause the port of Hong Kong to cease functioning.

by means of a boycott. Neither of these manoeuvres made any

serious impact in Hong Kong.

3. The more violent phase of the campaign was touched off

by an attack on a border police station on 8 July by a mob

which crossed from China and included some militiamen.

The post was relieved by British Army units. Encouraged

by this incident which was interpreted incorrectly as

military support for "confrontation" by the Chinese

Government, the local Communists staged widespread

demonstrations and perpetrated acts of violence in the streets.

The police retaliated by mounting raids on Communist

centres, seizing stocks of weapons and subversive literature

and disorganising the Communist leadership. As a result,

Communist action noticeably decreased and was virtually

*

CONFIDENTIAL

/confined

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