SUNFIDENTIAL

re-established.

the

In these circumstances a policy of vigilance

coupled with flexibility would seem to be the right one.

9. It is generally agreed that there are two areas of

particular sensitivity for the Communists in Hong Kong:

press and education. In the case of the former the Governor

has acted with great restraint in permitting Communist

newspapers to continue publication even though they are

consistently in breach of the law because of the inflammatory

and sometimes seditioue material they publish. In the oase

of education he is also showing himself aware of ühinese

sensitivity by not acting against certain Communist schools

when he would be perfectly entitled to do so legally. If

he felt this was desirable, we should have to weigh carefully

the risk to Sino-British relations against the risk to our

authority in Hong Kong. This first risk might have to be

taken if we were convinced either that there was a real danger

of the influence of Communist schools infecting the education

system as a whole or if the disregard of the law by managers

of Communist schools constituted a serious threat to the

authority of the Hong Kong Government. The number of

children in Communist schools only represents some 2.4 per

cent of the total school population in the Colony and though

it has risên 0.5 per cent since last year, in overall terms

no real danger can yet be said to exist. Nonetheless, public

apprehension at the progressive spread of Communism through

schools is real and has no doubt increased following the events

CONFIDENTIAL

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