97499 St.S.

NOTHING TO BE WRITTEN IN THIS MARGIN

Registry

No. HWB 10/16

DRAFT Letter S/O

Type 1 +

To:-

From

Top Secret

Xexre.XXX

1.Mrs. M. Hedley Miller,

A. W. Gaminara

Telephone No. & Ext.

Confidential. X

Treasury.

Restored.X

Unclassified.

02

Department

2.A. Mackay,

Treasury.

Esq.,

Copy to:

E.G. Cass, Esq.,

OBE, Ministry of Defence Main Building, Whitehall, S.W.1.

I am writing to you on a matter affecting

HongKong which has arisen as a result of the

repercussions of the cultural revolution in

China.

Although we have no reason to think that the

recent disturbances in HongKong were initiated Chinese Peoples' Cusinement on directions from Peking, the

has A indirect subsequently given very considerable encourage-

ment to their Communist compatriots in HongKong ←

This has been both direct, by way of financial

contributions to Communist strike funds, and

indirect, by way of propaganda and the

instigation of border incidents.

The se

Gorder

incidents have formed quite a separate and

distinct facet of the disturbances and have

ranged from the very serious (e.g. an

occasion on the 8th July when five Hong Kong

policemen were shot dead) to minor and temporary

incursions of civilians from the mainland.

The HongKong authorities have for some time

been worried about their inability to exercise

complete control of the border line. There has

always been a danger that incursions of

civilians, local militia and elements of the

Red Guard from over the border might be

instigated from Peking at any time, and that

these incursions might become larger and

penetrate further into British territory.

the face of this potential external threat,

In

/the

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