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5% BUT VARYING ACCORDING TO
POLITICAL RELIABILITY'.
SENIOR OFFICIALS WERE TOLD THAT THE AWARD DID NOT CONTRADICT THE POLICY OF ECONOMY DICTATED BY THE CULTURAL REVOLUTION AND
WAS AIMED AT COUNTERING THE EFFECTS OF DEVALUATION AND THE INCREASED COST OF LIVING. THERE ARE INDICATIONS THAT SIMILAR PAY INCREASES WILL BE IMPLEMENTED IN COMMUNIST INSURANCE, FILM PUBLISHING AND CHINESE PRODUCT COMPANIES.
CED AN ANNOUNCEMENT BY THE COMMUNIST HEUNG TO MIDDLE SCHOOL THAT LATER THIS YEAR THEY INTEND TO OPEN A NEW BRANCH SCHOOL AT TSUEN WAN AND THAT ITS ALUMNI ASSOCIATION WILL ALSO ESTABLISH A PRIMARY SCHOOL IN KOWLOON. TWO COMMUNIST SCHOOLS HAVE HELD CONCERT PARTIES AT WHICH THE AUDIENCE HAS INCLUDED STUDENTS FROM NEUTRÁL AND GOVERNMENT SCHOOLS.
(F) PROPAGANDA IN THE COMMUNIST PRESS WHICH GAVE PROMINENCE TO THE RECENT STATEMENT BY THE KWANGTUNG SUPPORT COMMITTEE REGARDING THE IMPORTATION OF 'GIFT RICE' AND THE REINSTATEMENT OF STRIKERS CPARAGRAPH (F) OF MY TELEGRAM NO. 569 REFERS). FULL REPORTS ON DELEGATIONS TO GOVERNMENT OFFICES CONCERNING THE FORMER ISSUE HAVE BEEN PUBLISHED BUT NO REFERENCE MADE TO 'REINSTATEMENT' DELEGATIONS. OTHER THEMES INCLUDED THE SUCCESS OF THE CANTON TRADE FAIR, ALLEGATIONS OF POLICE PERSECUTION OF VEHICLE DRIVERS AND 'SERIOUS CRIMES COMMITTED BY AMERICAN SAILORS ́IN
THE COLONY.
(G)
QUIET IN THE BORDER AREA APART FROM A MINOR INCIDENT ON MAY 9TH AT SHA TAU KOK WHEN YOUTHS IN CHINESE TERRITORY CC.T.) STONED BRITISH MILITARY PERSONNEL. ON 6TH MAY A 'CLEAN' KOWLOON CANTON RAILWAY SHUNTING ENGINE WAS PUT INTO SERVICE BETWEEN LOWU AND SHUMCHUN (C.T.). SO FAR IT HAS NOT BEEN DEFACED CTELEGRAM NO. 541 REFERS). THE REQUIREMENT THAT NUMBERS OF CHINESE TRAVELLERS ENTERING CHINA AT LOWU CHANT PRO-MAO AND ANTI-IMPERIALIST SLOGANS HAS CONTINUED BUT THERE HAVE BEEN NO ANTI
-
HONG KONG SLOGANS
CPARAGRAPH (1) OF MY TELEGRAM NO. 539 REFERS).
CH) A MARKED DECREASE IN ILLEGAL IMMIGRATION : AND ONLY 4 IMMIGRANTS WERE ARRESTED DURING THE WEEK AND ALL CAME FROM
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