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4.

Reference....

Mr. Carter

Mr. Moreton

Sir Arthur Galsworthy

The report behind (1) brings up to date the earlier report flagged on attached volume.

2.

This later report does not, I think, contain any information of which we are not already aware. It gives one the impression that the Hong Kong Special Branch are fairly confident that they are containing Communist efforts to undermine authority with a vestige of doubt perhaps creeping in with regard to the sphere of education. We have recognised for some time that this is one of the most difficult threats to counter and is in the same category as that of the Communist press.

3. It seems clear that, at any rate in the short and medium term, so long as the Hong Kong Government continues to show that it intends to be master in its own house, there is little chance of its losing the mass support of the people of the colony. However, /expiration of come the 1980's, when the/lease will seem considerably closer, the position may become very difficult indeed.

the

(A.W. Gaminara) Hong Kong Department (Room K 247, MA 171)

There is an inherent contradiction in the declared long-term Communist policy "to increase their influence and erode the position of Government, while at the same time continuing to enjoy the economic benefits of the Colony" (paragraph 1 of the Report). If the first part of this policy succeeds and the position of the Government was eroded, the Communists would not of course be able to enjoy the economic benefits of the Colony. No doubt what they are after is to improve their position locally, to weaken the authority of Government to a limited degree only and be in a position to put into effect any change towards a more drastic policy at the directive of Peking. But so long as the policy exists as stated, it should mean that Communists will always draw back when a certain point is reached in their attempts to undermine the Government. I recognise however that this is much too tidy an analysis and that the Chinese will not necessarily act logically, nor will Peking necessarily remain fully in effective control of local Communist leaders.

Wohnout

(J. O. Moreton) 17 December 1968.

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