0003160 G.F. 316

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.2.

regularly at the Workers' Club, was overcome by using old scripts with quotations from MAO added and the Hong Kong Chinese Reform Association's concert to be given on 5th March, Women's Day, is to include a group of 200 people singing songs based on the same scries of quotations. In the field of education schools held study periods, some compulsory and some voluntary, for which games periods were sacrificed. The China Resources Company declared that study of Thoughts of MAO Tse-tung was "to take priority over office work, as, if this is done, the office work will look after itself". It also imported cheap cigarette lighters and diaries inscribed with quotations from MAO, which are being sold to members of left-wing organisations.

3.

The boycott of Portuguese nationals and the final signing of the agreement between the Macau Government and the local communists brought Macau back into the headlines at the end of the month. The Hong Kong fund for building a new school on Taipa Island (L.I.C. report for December, 1966, paragraph 13. refers) is approaching HK$250,000. A number of left-wing controlled schools are planning to send students to Macau over the period of Chinese New Year to observe "the enthusiastic study of MAO's works and their compatriots' fighting spirit against colonialism". These visits could have repercussions in Hong Kong, if the students are inspired by the example of their colleagues in Macau and are tempted to behave in a similar manner on their return to the Colony. Increased interest in Macau was also shown by commercial and cultural circles; a departmental head of the China Resources Company claimed that the success of the Macau Chinese had been due entirely to their diligent study of the Thoughts of MAO, which had been their only guide as they had no leaders and were unorganised, adding that these thoughts could be used "to oppose the Hong Kong Government with similar effect if necessary The left-wing Phoenix Film Company held a meeting about Macau, at the end of which a director was asked if the people of Hong Kong would be "mobilised" as they had been in Macau. He replied that this was not necessary at present, but that the environment of the two peoples was similar (implying that the same action could be taken in Hong Kong, if the need arose).

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The communist controlled newspaper Wen Wei Pao was informed that its subsidy of HK$70,000 from the C.P.G. is to be reduced by HK$5,000 a month from January this year. At least seven other left-wing newspapers receive subsidies, either in cash or in cheap newsprint, and if this reduction is indicative of a general reduction in C. P. G. subsidies to local left-wing organisations, it could well have some adverse effects on the left-wing particularly in the propaganda sphere. So far, how- ever, this is the only reduction in such subsidies to come to notice.

5.

The left-wing press again criticised the use of Hong Kong by U. S. ships. The visit of the Commander of the U.S. 7th Fleet came under especially sharp attack and the (false) allegation that he had attended a cocktail party at which General Cassels, Chief of the General Staff was also present was adduced to prove that the Colony was being used by the U.S. as a base for the war in Vietnam. Other subjects taken up by the left-wing press in attempts to embarrass Government were the hawker problem and the resettlement of boat people from a harbour which is under development. It was alleged that some hawkers in a fast developing area of Kowloon were summoned for obstruction as many as 12 times in one day, while resettlement of the boat people would cause hardship and unemployment. A demand was made for a change in Government resettlement policy.

6.

The dispute arising from the shooting incident off Brisbane on the Royal Interocean Line (R. I.L.) vessel "Straat Malakka" (L.I.C. report for December, 1966, paragraph 22 refers)

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