Despite its problems, the communist labour movement still
comprises the major organised union structure in Hong Kong;
its experienced leaders have reasserted their control and
have resumed attempts to dominate selected industrial
disputes as well as to initiate recruiting drives for new
union members;
The expansion programme in communist schools has resumed
with an increase of 7,000 students during the year;
(h)
Morale is high in communist education circles and students
are being used increasingly in United Front work;
(i)
34.
(j)
(k)
Communist propaganda organisations have been beset by
financial and staffing problems for which at present they
have no apparent solution. Some progress has been made
only in press circles which continue to provide the
communists with a channel for the dissemination of
propaganda, reaching a large section of the population;
Communist commercial, banking and insurance establishments
have achieved some measure of success in their attempts to
regain the business lost last year and most recent evidence
indicates an upward trend which may continue with the
maintenance of stable conditions in China.
Communist organisations are increasing their capacity to
use cultural channels as a means of United Front work and
resuscitation of various cultural groups, music and other
associations is now underway.
The local communist movement has not yet recovered from the damage
it suffered last year and it does not have the capability at present to
stage a major prolonged confrontation with Government on the ground or to
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