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one of theory rather than action. In recognising the difficulties which

might be presented by militant labour cadres' reaction to the current MAC's

directives concerning the paramount position of the workers, then being

promulgated throughout China, he commented that the Unions would be given

some leeway, but they would be watched very closely.

18.

During the second week in October the broad outline of a policy

directive, issued by C.P.G. Premier CHCU En Lai to the leader of a Hong

Kong delegation, which had just visited Feking and presented a report on the

local situation, was dissemminated to senior communists in the Colony. The

Premier had apparently laid down principles, to be followed in Hong Kong in

future, which had been formulated following a careful analysis of the situation

in the Colony. This analysis had disclosed the weaknesses in the communist

policy, which had demanded impossible concessions from the Hong Kong

Government, and the success of the latter's policy of restrained but firm

action. The directive stressed that while the 'struggle' against the Hong

Kong Government should continue, it must not stand in the way of future

Sino-British relations; where the British had made concessions no provocative

action, should be taken. Flexibility must be the key to communists tactics

in propagating MAC's Thoughts, thus reiterating to some extent the

instructions given earlier in the year (para 15 above). The difference

between conditions in China and Hong Kong and the need therefore for different

methods in studying and applying MAO's Thoughts are also emphasised again.

The principal tasks for the future are to win over the masses and further

patriotic education, at the same time excessive demands should not be made

and the strength of local communists must be nursed carefully. During the

meeting in Peking CHOU En Lai had apparently intimated that the C.P.G. were

considering releasing Grey, the Reuters correspondent detained in Peking

since July, 1967, apparently in the context of matters which should be

/resolved

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