payroll which represents a drain of nearly $5 million a

month on their exchequer. This money is, to a large

extent, being provided by China.

3.

First indications that the communists were

running out of funds came towards the end of 1967 and

since then there have been half-hearted efforts to

economise by paying strike pay only to people who regularly

attend union premises and eliminating those who have

found themselves other employment. In the middle of

February some 400 strikers in the textile trade were

instructed to find re-employment and informed that strike

pay would not be continued on an indefinite basis.

4.

From the 1st March, 1968; "return to work"

became the main topic at most communist union meetings

and although the initial announcements were greeted with

considerable hostility in some unions, particularly

amongst former transport and dockyard workers, the new

policy became gradually accepted by the workers who

realised that they had no alternative but to obey the

directive. Nevertheless, they made it quite clear to

their union officials that they expected to continue

receiving "strike pay" until they actually regained their former positions.

5.

During March and the first two weeks in April communist union meetings were concerned mainly with

seeking to explain away the reasons for the return to

work and little mention was made of methods and timings,

During these sessions it became abundantly clear that

the return to work was in no sense an admission of defeat

by the communist hierarchy. Apart from enabling them to

reduce their expenditure, it became clear that the change

of policy had been brought about by a realization that

/continuation....

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