13.

CumriUCNTAL

rivc

1

9

TEX

Mass agitation is likely to backfire:

(a)

Such tactics are associated with the extremism

Of the Cultural Revolution and will reinforce

hostility towards the United Front.

(b)

The FTU may get some mileage out of such

issues as inflation. However, pro-PRC trade

unions have to follow the CPG's directives not

to

alarm the business community by adopting

"socialist" policies.

(c)

The DAB is likely

score some

success

}. .

splitting

the

liberals".

The

UDHK

is

probably

uncomfortable

about

Other

groups resent

the

impervious (though

"pro-British" allegations).

UDHK and would like Co

improve relations with the CPG. However, all

1+

'liberals" have to bear in mind that democracy

is a key element in their electoral appeal.

GF 323

CONFIDENTIAL

機密

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