0003160 G.F. 316
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DEFEATED FACTIONAL ELEMENTS SEEKING REFUGE IN THE COLONY,
19.
Factional fighting har virtually ceased and is now under control in Kwangtung Province and adjoining areas and no large group of defeated elements has emerged. There has been no attempt to seek refuge in the Colony either by land or sea and it is considered that the C. C. A. control now makes such an eventuality unlikely. Similarly those purged in the current anti-rightist campaign are not likely to present any major illegal immigration threat while C. C. A. control of the border area remains firm.
A RESURGENCE OF MILITANT ACTIVITY IN THE BORDER AREA.
20.
It seems probable that the recent C. P. G. directive to Communists in Hong Kong to continue a non-violent long term struggle against the Government is known to C. P. G. authorities, both military and civil, in the border area. Therefore the present policy of non-violent activity is likely to continue in the foreseeable future and no resurgence of any general militancy is expected. However, as always in this sensitive zone, there remains the possibility that a minor local incident could escalate into something more serious, particularly if the incident involved C. T. residents working in B. T. and thus outside the direct control of the C.C. A. If this happened the C. C, A. might feel obliged to lend some support to C. T. residents, and the use of ar ned force, though unlikely, cannot be ruled out.
PROVOCATIVE INCIDENTS BY THE SHA TAU KOK "ESCAPEES"
21.
Some leaders of the "exiles" remain in Sha Tau Kok, but the majority of the members of this group are now believed to be in the urban areas of Kowloon. The influence of those who remain in the area has definitely waned and they are under the control of the C. C. A. Nevertheless this is a particularly sensitive area and the presence of known agitators, capable of exploiting a spontaneous incident, continues to present a threat to the stability of this section of the border zone.
SECURITY FORCES ACTION IN AREAS OTHER THAN THE BORDER.
22.
In the event of it being necessary for Security Forces to take further action against Communists in the urban areas or other parts of the New Territories, it remains a possibility that there could be a militant reaction on the border. However, while local Communists continue to follow the current Peking directive, the necessity for such action is not considered likely.
CONCLUSIONS
23.
On the basis of this study it is concluded that :-
(a) There is no change in the C. P. G. policy of a non-violent
struggle in Hong Kong and there is every indication that this policy will continue in the foreseeable future;
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/ (b)....