REF.

CYPHER/CAT A

SECRET

PRIORITY HONG KONG TO COMMONWEALTH OFFICE

TELNO 884

SECRET

12 JULY, 1968

Conies 6 HWA3/2

28

PEKING TELEGRAM NO. 648: POLICY IN HONG KONG.

192

RECEIVED IN

ARCHIVES No. 63

TOP COU₤1968

I SUGGEST THE MAIN FEATURES OF THE CURRENT PHASE OF CONFRONTATION

ARE:-

(A) THE CPG AT A HIGH LEVEL HAVE ALREADY INSTRUCTED INFLUENTIAL LOCAL COMMUNIST LEADERS TO DROP VICLENCE AND CONCENTRATE ON BROADEN- -ING THE BASE OF COMMUNIST SUPPORT. THIS ATTEMPT TO WIN OVER ADHERENTS IS OF COURSE A POLICY OF MANY YEARS STANDING AND IS OBVIOUSLY ONE WHICH WILL NEVER BE ABANDONED. TO THIS LIMITED EXTENT WE ARE ALREADY BACK TO NORMAL, WITH CONFRONTATION IN HONG KONG LARGELY OVER FOR THE TIME BEING: BUT THE PROPAGANDA ATTACK IS MORE OVERT AND MORE BITTERLY PROSECUTED THAN PRE-1967, AND (B) WHATEVER WE DO, ACTIVE CONFRONTATION COULD START UP AGAIN AT ANY TIME IF THE BALANCE OF INFLUENCE WITHIN THE CPG SHIFTS. (C) THE POLICY IN (A) HAS GENERALLY SPEAKING BEEN SUCCESSFULLY IMPOSED AND, PARTLY AS A RESULT, MORALE IN LABOUR CIRCLES PARTIC-

-ULARLY IS LOW: BUT THERE REMAINS A HARD CORE OF THE MILITANTLY MINDED. THIS MILITANT HARD CORE WILL ALWAYS SEEK TO MAKE TROUBLE,

AND ARE CERTAINLY NOT INTERESTED IN ANY ACCOMODATION WITH US EXCEPT WHOLLY ON THEIR OWN TERMS. THE AUTHORITY OF THE MODERATE LEADERS

IN THE CPG AND HERE IS NOT 30 COMPLETE THAT THEY CAN ENTIRELY DISCLAIM THE MILITANTS. THEY CANNOT AVOID SOME BENDING TO

MILITANT VIEWS, NOR AVOID GIVING THEM SOME OSTENSIBLE SUPPORT. IT IS INDEED ARGUABLE THAT THE COMMUNIST LEADERSHIP HERE IS AT PRESENT

REALLY QUITE GLAD TO SEE US OCCASIONALLY TAKE A FIRM LIVE WITH

THESE PEOPLE.

(D) THE PRESENT POOR STATE OF SINO-BRITISH RELATIONS, WITH ALL THE

ILL-EFFECTS WHICH FLOW THEREFROM, RESULT ESSENTIALLY FROM A COMPOUND OF CHINESE FEELINGS OVER LACK OF SUCCESS IN HONG KONG

SEMICOLON THE GENERALLY OVER-EXCITED EMOTIONAL ATMOSPHERE IN

CHINA SEMICOLON THE NECESSITY TO TAR US WITH THE BRUSH OF OUR

SECRET

AMERICAN

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