9. There are two areas of particular
sensitivity for the communists in Hong Kong:
the press and education.
Action against
either could lead to a sharp communist
reaction, in Peking as well as Hong Kong.
Both have been handled by the Governor with
great care and restraint.
Communist news-
papers and schools have been allowed to continue
although in breach of the law. The question,
as always, is to balance the need to take
firm action to maintain the Government's
authority and public confidence in Hong Kong
against the risk to Sino-British relations
in general, and to Hong Kong in particular,
of a strong C.P.G. reaction to any measures
we may take.
10.
It is in this context that we would like
to discuss with the Governor :-
(a) the threat posed to the educational
system as a whole and to the
authority of the Hong Kong Govern-
ment by the potential expansion of
communist schools;
/ (b)..
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