CONFIDENTIAL
8 -
26.
The enrolment in Communist schools is about 29,000, roughly 2% of the total school population of the Colony; but even so some two thirds of the children of hard-core Communist, or Communist-influenced, families have to go to other schools, Further expansion is planned, and a major fund raising campaign has just raised several million dollars, well above the target. The abysmal showing of candidates from Communist schools in public examinations has led to a slight further reduction of political content in curricula. The staff and pupils nonetheless remain fervent Communists and their morale is high. These schools present a serious long term threat.
27.
There have been no serious incidents in the urban areas, although irritating rather than serious incidents of a basically mischievous kind along our border have been constant. The ruthless methods used by the C.P.G. authorities to prevent illegal emigration have led to parties crossing into British territory to recapture escapers on several occasions. Such incursions could lead to a clash with our security forces which might have serious repercussions. the whole, however, the C.P.G. authorities have successfully controlled the activities of militants in the border area and prevented serious trouble developing.
On
28,
Reports of preparations within China against war have been widely circulated in the Colony but have not so far made much impact, and are unlikely to do so while the Sino-Soviet talks continue. It is difficult to forecast what the effect on Hong Kong's security would be of an outbreak of fighting between China and the U.S.S. R. The appeal to Chinese patriotism would obviously be strengthened but, since the interests of China would probably best be served by continuing to exploit the economic and other advantages of the Colony, it could be expected that the Communists here would be instructed to continue to avoid violence and major clashes.
29.
Considerable progress has been made in our study of the practicability of introducing some form of local administration on a district basis, but my conclusion is that this is not possible without enlarging the franchise to an unacceptable degree, nor would such measures gain much support. There is, as you know, no popular demand for a larger electorate
A nor for the importation of western systems of Government. further consideration is that decentralisation of this nature would be an uneconomic use of manpower and funds, in a compact community such as ours, and would prove less efficient than the present arrangements. I have therefore concentrated on' rationalising the position of the Urban Council, and various proposals to this end will shortly be presented to the Executive Council, The principal changes proposed relate to greater
/financial
CONFIDENTIAL