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(D) THE ARREST AND CONVICTION OF TWO PERSONS INVOLVED IN RIOTS IN SHAU TAU KOK B.T. IN JUNE AND JULY 1967, ONE OF WHOM PETURNED FROM C.T. AFTER TAKING REFUGE THERE FOR NEARLY 18 MONTHS (TELEGRAMS 925/67, PARAGRAPH 1(E) OF 945/67 AND 988/67).
(E) CONTINUED UNEVENTFUL INSPECTION OF COMMUNIST SCHOOLS AND UNION
CRECHES. STUDENTS FROM ONE COMMUNIST SCHOOL WILL TAKE PART IN POLITICAL STUDY SESSIONS IN CHINA DURING THE CHRISTMAS HOLIDAYS.
COMMUNIST SCHOOLS ARE PLANNING SPORTS AND OTHER FUNCTIONS LATER THIS MONTH TO WHICH, IT IS ANTICIPATED, NON-COMMUNIST STUDENTS WILL
BE INVITED. OFFICIALS OF A COMMUNIST BANK HAVE INDICATED TO THE
EDUCATION DEPARTMENT THEIR INTENTION TO APPLY TO REGISTER A NEW
SCHOOL IN THE BUILDING WHICH PREVIOUSLY HOUSED THE DEREGISTERED
CHUNG WA SCHOOL (PARAGRAPH 1(A) OF TELEGRAM 1008).
(F) THE ANNOUNCEMENT BY ALL UNIONS, EXCEPT ONE BRANCH OF THE MAIN TRANSPORTATION UNION, OF THE TERMINATION OF QUOTE STRIKE PAY UNQUCTE THIS MONTH. HOWEVER, THERE ARE INDICATIONS THAT SOME FORM OF FURTHER FINANCE (GROUP UNDEC) ASSISTANCE WILL BE
PROVIDED AT LEAST FOR THOSE UNIONS WHICH STILL HAVE A LARGE NUMBER
OF UNEMPLOYED STRIKERS.
(G)
A DECISION TO ABANDON THE UNSUCCESSFUL AMALGAMATION OF
THE THREE LEADING COMMUNIST LOCAL FILM COMPANIES AND THE ANNOUNCE-
MENT BY OFFICIALS THAT THERE CAN BE LESS EMPHASIS ON MAO
DOCTRINE ALTHOUGH THE THEME OF FUTURE PRODUCTIONS SHOULD CONTINUE
TO BE ANTI-IMPERIALIST. THE COMMUNIST FILM INDUSTRY PLAGUED WITH
STAFF AND FINANCIAL PROBLEMS, HAS NOW APPARENTLY BEEN ALLOWED TO
FORSAKE SOME FOLITICAL IDEOLOGY FOR ECONOMIC EXPEDIENCY.
2. THE COMMUNIST PROPAGANDA CAMPAIGN DEMANDING THE RELEASE OF
ALL QUOTE IMPRISONED COMPATRIOTS UNQUOTE CAN BE EXPECTED TO
CONTINUE FOR THE IMMEDIATE FUTURE AND IS, TO SOME EXTENT,
A MEASURE OF THE EMBARRASSMENT THE WESTERN CAMPAIGN REGARDING
GREY IS CAUSING CHINA. THE EMPHASIS ON DISASSOCIATING RELEASE
OF LOCAL PRISONERS AND RELEASE OF GREY SUGGESTS THAT PEKING
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