CONFIDENTIAL
and he may well not be prepared to be frank with us even now. Our own information suggests that the present deadlock continues and neither side is taking any effective step towards a solution. Two of the Chinese gunboats off the shore yesterday made a short sortie into the ferry channels in an obvious attempt to emphasise that they could block the ferries' movements. Meanwhile, the H.K. left-wing press continues to talk about the organisation of a boycott if Portuguese delaying tactics continue; but still gives no particular prominence to the dispute.
(Passed to D.S.A.0. for Resident Clerk)
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CONFIDENTIAL
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