putting up posters on the frontier, mainly at Sha Tau

Kok, continue to occur but not on any large scale.

They could, of course, as always, develop into more

serious incidents. The Chinese Territory farmers with

land in British Territory and the labourers handling

cargo in the Man Kam To lairage area, while continuing

to show an unfriendly and resentful attitude, have,

for the time being at any rate, stopped seeking to provoke

They are undoubtedly under the influence of

the commune leaders who generally appear to have accepted a policy of endeavouring to avoid any direct conflict

with British Security Forces. However, the farmers and

labourers continue to propagate the thoughts of MAO by the ostentatious study of his works and chanting slogans

during their visits to British Territory.

trouble.

16.

The exceptions to this general state of affairs

are, to some extent, the seventy odd Sha Tau Kok escapees,

(thirty of whom are wanted by Police to answer criminal

charges) who, still fearing arrest if they return to

British Territory, remain "in exile" on the Chinese side

of the border. They have never been really accepted by

the Sha Tau Kok Commune and do not appear to be amenable

to local communist discipline, occasionally acting in a

provocative manner. They pose a problem in this area.

17.

Because of continued factional strife the C.C.A.

have taken over virtual control of the whole of Kwangtung

Province. So far the unsettled conditions have not

apparently affected the border where the C.C.A. has

gradually extended its influence and control over the

behaviour of inhabitants. There has, however, been no

change in C.C.A. deployment, and one regiment remains in

/the..

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