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HONG KONG TELEGRAM NO.2124 TO FCO.

-3-

5. IT IS APPARENT THAT A CLOSE STUDY HAS BEEN MADE IN PEKING OF THE

OMMUNIST POLICY AND TACTICS EMPLOYED IN CONFRONTATION AND THE REACT

-IONS THERETO BY GOVERNMENT. AS A RESULT THE C.P.G. INTENDS TO

EXCERCISE EVEN GREATER CONTROL OVER HER FOLLOWERS IN HONG KONG,

SO THAT THE LOCAL STRUGGLE, NOW TO BE A ROUTINE LONG TERM AFFAIR,

IS SUBORDINATED TO THE OVERALL DICTATES OF PEKING'S FOREIGN

POLICY. WHILE THE POLICY DIRECTIVE IS AN AUTHORITIVE INSTRUCTION

ITS BROAD AIMS ARE NOT OF COURSE NEW SEMICOLON RATHER IT IS

AN EXPANSION OF THE GENERAL POLICY LINE FOLLOWED CLOSELY SINCE

THE BEGINNING OF THIS YEAR. (PREVIOUS INDICATIONS OF CHINA'S

DESIRE TO TONE DOWN CONFRONTATION WERE GIVEN IN TELEGRAMS 300

AND 3500.

6. AT THIS BRIEFING NO INDICATION WAS GIVEN TO THE IDENTITY OF THE

AUTHOR OF THIS DIRECTIVE, BUT AN EARLIER REPORT LEFT NO DOUBT THAT

IT ORIGINATED FROM CHOU EN LAI (TELEGRAM 2085 REFERS). CONSEQUENTLY

IT MUST BE ASSUMED THAT CHOU IS SUFFICIENTLY SURE OF HIS POSITION TO

DICTATE SUCH A PRAGMATIC APPRECIATION AND POLICY DIRECTIVE. THIS

COULD, OF COURSE, HAVE WIDER IMPLICATIONS THAN THE LOCAL SCENE AND

MAY BE A FURTHER POINTER TO A MORE RATIONAL APPROACH BY THE C.P.G.

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TO THE WHOLE QUESTION OFFOREIGN AFFAIRS.

FO PLEASE PASS ROUTINE WASHINGTON.

SIR D. TRENCH

FILES

HONG KONG DEPT.

P.U.S.D.

FAR EASTERN DEPT.

GUIDANCE DEPT.

J.I.R.D.

SIR A.GALSWORTHY

MR. MORETON

P.S. TO LORD SHEPHERD

OVERSEAS LABOUR ADVISER OVERSEAS POLICE ADVISER

[PASSED TO CABINET OFFICE]

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