SECRET
HONG KONG TAOGRAM NO. 312 TO COMMONWEALTH OFFICE
5.
PURPOSE CRELIEF TO RAIN VICTIMS RATHER THAN UNEMPLOYED) COULD
PRESENT
1M WITH A SUFFICIENT 'VICTORY', AT LEAST FOR THE TIME BEING, TO
PROVIDE A LET-OUT ON THE RICE QUESTION.
4. THE ABSENCE OF ANY REFERENCE IN THE COMMUNIST PRESS TO
GOVERNMENT'S ANNOUNCEMENT ON GPS OMITTED] ALLIED TO THE MANNER IN
WHICH SOME OF THE PAPERS HAVE REFLECTED THE GOVERNMENT OFFICIAL'S
UNAUTHORIZED SPEECH ON RE-EMPLOYMENT, SUGGESTS THAT THIS RATHER
THAN REINSTATEMENT MAY GRADUALLY BECOME ACCEPTABLE FOR THE MAJORITY
OF STRIKERS. THIS WOULD BE IN LINE WITH STEPS ALREADY TAKEN
IN CERTAIN LABOUR SPHERES SUCH AS THE TEXTILE INDUSTRY AND SOME
SECTIONS OF THE MAJOR COMMUNIST TRANSPORTATION UNION (PARAGRAPH 1(C)
OF TELEGRAM 596).
5. TRAVELLERS FROM CANTON REPORT THAT FACTIONAL CLASHES AND GENERAL
LAWLESSNESS CONTINUE IN THE CITY. SEVERAL HAVE SAID THAT THE CANTON
AUTHORITIES HAVE THREATENED TO USE FORCE AGAINST STUBBORN FACTIONAL.
ELEMENTS: VIOLENCE OUTSIDE CANTON APPARENTLY CONTINUES. FLOODING
HAS BEEN REPORTED IN A NUMBER OF AREAS IN KWANGTUNG, AND ALTHOUGH
RAIL TRAFFIC BETWEEN CANTON AND THE BORDER HAS NOT BEEN DISRUPTED,
PRODUCE IS ARRIVING FROM CHINA BY RAIL AT A SLIGHTLY REDUCED LEVEL.
ADVANCE COPIES SENT.
NATON
CO PLEASE PASS WASHINGTON 85 AND CANBERRA 56.
SIR D. TRENCH
FILES
C.O.
[REPEATED AS REQUESTED
PASSED TO CABINET OFFICE].
H.K.D.
I. AND G.D.
F.E. AND P.D.
SIR A. GALSWORTHY
P.S. TO LORD SHEPHERD
F.0.
F.E.D.
MR. WILKINS ON
U.L.A.
U.P.A.
I.R.D.
I.P.D.
GUIDANCE DEPT.
SECRET