CONFIDENTIAL

(b) All our barbed wire must be removed.

(c)

Compensation to be paid for the inuured man and holdups in traffic.

5. By now two further companies of troops had been ordered to the scene and some were very close. However, the C.0. with a knife at his throat called out "We're all right, do nothing unless ordered by higher authority". The document was then signed. Thereafter our men were led on to the bridge where their arms were handed back and the Chinese returned to their own territory. The incident concluded at 0540 hours.

C.C.A. Reactions

O

6.

During the morning of 10 August the C.C.A. built two new sand bag emplacements close to the Lo Wu Bridge and manned positions overlooking the bridge with about 100 men who were camouflaged up. Opposite Man Kam To movement of C.C.A. troops was observed while further east, four machine guns were sited to cover the police post at Ta Ku Ling and a near-by army position. These moves were seen as reactions to cur increased readiness, but may have been designed to control their own side. During the afternoon, there were no further movements but just before dark a 75 mm. recoilless rifle with open ammunition boxes beside it was sited near the Man Kam To bridge covering the police post. There were no other movements reported during the night.

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