0003160 G.F. 316

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Canton were confirmed by an eye-witness account of a person who took part in a meeting of revolutionary representatives, held the day before the Fair opened, and which CHOU visited. CHOU was said to have addressed the representatives' meeting in MAO's name and to have urged those present to make still greater efforts for the revolution and to complete the tasks of struggle, criticism and reform. In spite of the current Cultural Revolution in China, the Fair itself is displaying more luxury goods than ever before, although some shown are not yet available for export. The supply position of the China Resources Corporation (L.I.C. external Intelligence Report for March 1967, paragraph 13 refers) has also shown a marked improvement over the position during the first quarter of the year and there have been few cases during the month of buyers being asked to extend the term of their letters of credit.

6.

In Macau on the 13th April, a crowd of more than 1,000 persons demonstrated outside the house of a Chinese couple of Portuguese nationality who were alleged to have ill-treated a maid servant; the couple had left Macau the day before and are now believed to be in Europe. The crowd was controlled by pickets wearing red arm bands and dispersed after some hours without incident. On the following day a left-wing delegation was received by the Governor who promised a full investigation into the matter. The delegation took the opportunity of reiterating previous demands made by the left-wing that a hawker, who they alleged had been unreasonably arrested in November, 1966 and sentenced to seven months imprisonment, should be released. This was done the next day. These incidents coincided with the arrival of Snr. Alberto da Silva, a Portuguese official, to take up a new post as Secretary General of the Macau Government. It appears that the left-wing in Macau were reminding the authorities that the real power continues to lie with them.

7.

The border has been quiet during the month although the hoped for meeting between members of the Fu Shing Commune and Hong Kong Government representatives about the difficulties arising in No. 5 Oyster Bed, Deep Bay, (1.1.C. External Intelligence Report for March, 1967, paragraph 10 refers) did not materialise. As a result of this failure of the commune to honour their agreement an unofficial contact has been made with the New China News Agency (N.C.N.A.) in Hong Kong in an effort to get Peking to arrange for the Commune members to meet the District Officer, Yuen Long, and settle the affair locally as was agreed between H.M. Charge d'Affaires and the C.P.G. Foreign Ministry.

8.

There has been no easing of Russian attempts to obtain a foothold in the Colony. The Tass corres, ondent in Singapore and the Deputy Chief Editor of Izvestia (L.1.C. external Intelligence Report for March, 1967 paragraph 14 refers) vere refused visas for a stay in the Colony but passed through in transit on 24th April. One of them took the opportunity of a chance meeting with reporters at the Airport to express his dis- appointment at not being allowed to stay. The Director of Immigration while passing through Anchorage, Alaska, was approached by a Tass correspondent who demanded to know why a Hong Kong visa had not been granted to his colleague in Singapore.

9.

The negotiations between the Russian firm SUDOIMPORT and the Hong Kong and Whampoa Dock Company continued (L.I.C. External Intelligence Report for March, 1967 paragraph 14 refers). Three of the five Russians who applied were permitted to enter. One of them was identified as an R.I.S. suspect. Although the object of their visit was ostensibly only to finalise the contracts for the repair of Soviet vessels, the representatives lost no time in exerting pressure on Government through the Dock Company to

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