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5.
Meanwhile the Governor is gradually
but firmly taking steps to counter
illegal and subversive activities (e.g. the
poster campaign). He is treading warily so
as not to offer undue provocation to
Peking.
Chinese Intentions
6. There is no evidence that Peking instigated
7.
8.
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the present troubles or that there has been
any major change in Chine se policy towards
Hong Kong.
There are indications that Peking is
undecided about how to handle the situation;
this reflects perhaps the conflicting
pressures on the central authorities and the
growing confusion in China at the present
time. A recent article in the Peking
People's Daily enjoins the "compatriots" in
Hong Kong to await the call for action.
There is a danger that confusion and
indecision in Peking may lead to local
initiatives by extremists.
Future Prospects
If Peking decides on a policy of all-out
confrontation to drive us out, there is
nothing we could do to resist the pressures
they could bring to bear. We would have to
withdraw as best we could.
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