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(76) that a committee should be formed to struggle
against "persecution's and seek the support of seamen in other shipping companies; and that a
pamphlet would be sent to all seamen in the the world asking for their support. A statement was issued insisting that neither the Hong Kong police nor the Labour Department must take any part in the dispute which was not a matter for "Hong Kong British Authorities". Subsequently,
the left-wing federation of trade unions published a statement promising economic and general support for the seamen and saying that the company was acting in collusion with the "imperialists and
soviet revisionists". Chinese prestige was at stake.
5. On 18th February two union officials and 14 seamen (none of them employed on the ship) demanded an interview with the Personnel Manager and subsequently demonstrated against him inside the company's building. They eventually left but said that they would return with larger numbers of seamen each succeeding day this week.
6. Indications are that the company are not preparing to give way to the bulk of the demands. The captain of the S.S. "STRAAT MALAKKA" has privately been asked to resign (with a large sum in compensation) and the union have been promised a letter of apology for the fact that the police were called in and back payment of stand-by pay as soon as the dispute is settled. As of mid-day 20th February their representatives had not returned to the company's offices.
7. Throughout this dispute the seamen have made pointed references to the lessons learned by China in Macao. There seems little doubt that the affair is being blown up for political purposes; the union members have been adopting a deliberately provocative line which could easily lead to violence. There is as yet no hard evidence that the intention is that they should involve themselves in a direct confrontation with the Hong Kong Government, but their actions on 18th February could hardly have been taken if they were not ready to accept this risk.
8. The above is primarily for information, unless you feel that anything might be possible to indicate to the Dutch Government the undesirability of an incident arising here over a matter which is really no concern of Hong Kong's.
I would think this perhaps premature as yet, unless a particularly good opportunity arises; but it is something that may have to be borne in mind.
9. We ourselves will of course make every effort to avoid involvement, but cannot stand aside if a serious breach of the peace threatens to occur.
Passed to D.S.A.0. for repetition to Peking and POLAD Singapore7
Departmental Distribution
J.I.C. External Distribution
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