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exercised a restraining influence and eventually taken action to prevent incidents getting out of hand.

Conclusions

8.

The present firm policy to curb the activities of terrorists and of communist organisations and press and information media should continue. While the British Mission and other British subjects remain in China account should, as far as possible, be taken by the Hong Kong Government of possible repercussions in China of specific actions against the communists in Hong Kong. Meanwhile, we should watch the internal situation in China very closely to ensure that, as it evolves, we do not miss any opportunity which may present itself to open negotiations for a peaceful transfer of sovereignty of the colony.

- 3.

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