22

CONFIDENTIAL

(b) paragraph 3 suggests that a formed Chinese

(c)

battalion entered Sha Tau Kok during the day, in fact the reinforcement was piecemeal during the afternoon. The facts are set out in my telegram No. 988 and do not bear out this conclusion;

-

there is no evidence rather to the contrary

tha Communist leadership in Hong Kong had any idea what was going on at the village, let alone that they inspired it.

4. I remain of the view that events were almost certainly stimulated by militant villagers including militia members from the Chinese side egged on by discontents who left British territory after 24 June events, and with the approval of the local authorities. I find it difficult to believe that there was any direction of events from Peking, though concerted demonstrations at several points on the border may have been arranged and sanctioned by local authorities. The one at Sha Tau Kok may well have got out of control and it is possible that the border guards were themselves obliged to restore order on the Chinese side, but here I enter the realm of speculation.

5.

In guidance to the press here I propose to stick

to the line set out in paragraph 2 above,

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