both to the communist renk and file and the general public, overt defiance by the communists to Government. Action against the press will, almost certainly, evoke strong reaction, if only on a temporary basis, from China, but it is felt that whilst it continues in existence,

Therefore it is essential public confidence in Government may erode. that some further action be taken to demonstrate to the public, and tó

Serious the communists, that these journals are not beyond the law. consideration has been given to the effect this might have upon the suspended talks concerning border problems. It is felt that on balance, it is preferable to show the Chinese that we are not inhibited by such considerations, thus possibly adding weight to our side in any future parleys, rather than the opposite. In particular it might drive home the point to the Chinese that we are not prepared to give way on all points put to us by their delegation simply to get back the three Police Officers.

the If the moves proposed in this paper are made in the immediate future, Chinese may well think that it is a deliberate gesture of defiance. all the circumstances this may well not be a bad thing.

In

Simultaneous action against all six remaining papers would, undoubtedly, achieve the maximum effect but, besides representing a major operational commitment, it could be expected to draw the strongest reaction from China, It is recommended, therefore, that, initially action be taken to prosecute those responsible for publishing, printing and editing the three non-C.P.G. owned newspapers, i.e. the Ching Po, Hong Kong Commercial Daily and the Cheng Wu Pao, with a view to obtaining the closure of these journals. This will demonstrate that Government is not afraid to take action against the communist press and will deny the communist propaganda machine some of its media for advocating violence and sedition. Previous experience obtained from the closure of the first three pro-communist news- papers showed, surprisingly enough, that the circulation figures of the remaining press did not increase; if the same pattern is followed if another three newspapers are closed, the communist press stands to lose more than half its existing readers.

Should the closure of the newspapers recommended for action have no effect on the C.P.G. press, then further consideration will have to be given to closing it down.

SECRET

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