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5.

There is little doubt that the communist press is

the major communication link between the communist hierarchy and

the so-called "masses", particularly since the leaders in the

trade union field went into hiding in mid-July.

Militancy in

Although it is

the press is invariably followed by an increase in violent action

and, conversely, when the newspapers are relatively quiet, violence

diminishes. Statements by people arrested in connection with bomb

incidents and demonstrations indicate that there is little co-

ordination or control over incidents on the ground and that they

are, to a large extent, caused by small groups which take their

general line for action from the communist press.

difficult to accept this fully, having regard to the wide-spread nature

of incidents over the past few days, there is little doubt that the

communist press, while not involved in the manufacturing or planting

of bombs, by initiating and encouraging the populace, is largely

responsible for the waves of violence which occur from time to time.

This must be apparent to the local population and therefore, whilst

Government permits these journals to continue publication there could

be a general erosion of public morale and confidence in Government's

ability to maintain law and order particularly as, after a lapse

of a few weeks, the communist newspapers have resumed publishing

articles, which are ellegedly reports of "mosquito" news-sheets,

high-lighting personalities who are on the "assassination list".

A

There is little doubt that the most recent calls for

violence are due to the current visit to Hong Kong by Lord Shepherd.

Reliable intelligence obtained on the communist newspapers since

September shows that the major long-term propaganda effort will be

directed at gaining a broader support for the communist cause, based

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