CONFIDENTIAL
3
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confined to the planting of bombs.
The last bomb attack
occurred on 25 December last. The reasons why the campaign
of violence was called off were apparently, first, that it had attracted little popular support in Hong Kong in the
face of the firm but patient policies of the Government;
second, the waning of the Cultural Revolution in China
had enabled more moderate elements in the leadership to
reassert themselves and to bring a renewed recognition of the
economic importance of Hong Kong to China. The Communist
effort seems now to have moved from violence to attempts to
increase support by finding popular grievances to exploit.
In the long run this could be potentially dangerous but the
Communists have much leeway to make up. The Colony's
economy survived almost unimpaired, the value of exports
rising in 1967 by 16.9% over 1966.
Communist Press
4. In the course of the campaigh of violence, the
Communist press was a potent factor in encouraging disorders.
By August 1967 the Governor considered it necessary to take
action against the Communist newspapers in order that their
continued publication of seditious and inflammatory material
would not be taken as a sign of weakness.
There were
successful prosecutions for sedition against the chief
executives of three minor pro-Communist newspapers and the
CONFIDENTIAL
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