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ROUTINE HONG KONG

TO THE COMMONWEALTH OFFICE

TEL NO 1035

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29 AUGUST 1968

SPECIAL CARE 30 AUG 1968

265

ADDRESSED TO THE COMMONWEALTH OFFICE TEL NO 1035 OF 29 AUGUST

REPEATED FOR INFORMATION PEKING AND SAVING TO WASHINGTON AND

P.A. SINGAPORE.

NY TELEGRAM NUMBER 996: SINO-BRITISH RELATIONS.

FURTHER MEETINGS TOOK PLACE ON 17TH AND 20TH AUGUST.

(815) 18

to be nic

later.

2. FOLLOWING WERE THE MOST SIGNIFICANT POINTS TO EMERGE

(1) CONTACT MAINTAINS THAT THERE ARE CLEAR INDICATIONS THAT PEKING

IS TAKING ACTION AGAINST LAST YEARS TROUBLE MAKERS IN HONG KONG.

HE STATED THAT LEUNG WAI-LAM OCGROUP UNDEC) (WHO RECENTLY LEFT

FOR CHINA) HAS DEFINITELY BEEN DEMOTED AND THAT LIU, SUPERINTENDENT

OF THE BANK OF CHINA, WAS PREPARING TO LEAVE HONG KONG. LIU,

ACCORDING TO CONTACT, WAS RESPONSIBLE FOR 50% OF THE TROUBLE**

LAST YEAR.

(2) LI CHOH-CHIH HAD EXPRESSED CONCERN ABOUT ACTION LOCAL MILITANT

COMMUNISTS MIGHT TAKE AS A RESULT OF THEIR BELIEF THAT THE DE-

REGISTRATION OF THE CHUNG WAH SCHOOL AND THE ANNOUNCEMENT OF THE

RATION

EXTENSION OF MY TERM AS GOVERNOR HAD BEEN DELIBERATELY TIMED

TO COINCIDE WITH HOPSON'S RELEASE AND THAT THERE WAS PROOF OF A

BRITISH DEFORE (SIC) TO PROVOKE AND ESCALATE. CONTACT CLAIMED

TO HAVE WRITTEN A REPORT EXPLAINING THE TRUE POSITION FOR LI TO SEND

N TO PEKING IF NECESSARY TO COUNTER BALANCE ANYTHING THE MILITANTS

MIGHT SEND.

PA

ARG

3.9.68.

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/(3) CONTACT SAID

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