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exploited by local Comunists with the aid of hooligan

oleonta, soos of vion vere paåd. à enspalyn was than mountoð

as a direct and deliberate challenge to the autiority of the

Hong Kong Government.

8.

Disorders ceased on the 22nd May, the Coxxaist leadership

in Hong Kong having muffered an initial defeat.

Since than

it has eachæad violent methods and bası-

9.

(a) organised a series of token stoppages of

work, notably in pubide utilities and

government departaonteg

(b) continuod its anti-CoveZE

ubversive

propaganda ormpaign through the iro65,

posters and public ad rosa syetons mounted

on Commandat-omed hull ingo.

By immediate disciplinary action against its own staff,

the Fong Kong Government has sought to lead other employers

into taking firm action against those stopping work. Action

has been taken under emergency povora ngainst tio us of public

adress aystems and the display of posterɛ; there has been no

effective Commuist counter-nction to these 10631rus.

As yet

the Governor has taken no actim against the Freas or to deport,

detain or bar the entry of Command:~ lentera, under poners

which it has bean agrood he might usa if necessary. Use of

these povers might be consideret in Peking as a direct challenge

end could make it more difficult for Faking to with row

a policy of confrontation.

10. There are iniications that the lontorsiáp,hich was

in sasa

disarray.

after the falluro of its violmt metho ́s in

the face of strong public dispṛproval are no: mrking tim

ponding a signal or instructions from Peking.

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