factional groups, decisively defeated anywhere in the

Province, but especially near the border, by either

their opponents or the C.C.A., may attempt to take refuge

in the Colony. Groups of this type would, in all

probability, have some arms and might be forced to use them in desperation if their way was blocked by Security

Forces. However, there is no indication at present that

any such groups exist in the border area or are likely to

be strong enough to overcome C.C.A. forces there.

A Resurgence of Militant Activity in the Border Area

24.

Events in the border area are largely determined

by the overall situation in Kwangtung and Hong Kong.

Clearly the commune and Militia leaders are now obeying

instructions to avoid violence and conflict with British

Security Forces and to reduce tension generally.

the adoption of a less militant attitude.

Hence

However,

there is always the possibility that a local minor incident

could escalate into a major conflict, and once it had

developed, the C.C.A. might be forced, for political

if not military reasons, to support the Chinese Territory

elements.

Provocative Incidents by the Sha Tau Kok "Escapees"

25.

There are approximately 70 British Territory

residents still in Sha Tau Kok (Chinese Territory) including the ring-leaders of the incidents in June and

July, 1967, (See paragraph 10). Some 30 arrest warrants for these persons are still awaiting execution. They will not return to British Territory unless their safety from Hong Kong Police action is guaranteed, and they have

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