/ 20
SECRET
6
20.
It is noticeable that the Communists have not so far made any sustained
attempt to disrupt the Colony's food supplies from China. Nevertheless,
the present situation has led to some price rises in basic commodities,
particularly in rice (of which less than 30% comes from China) as a
result of rumours and hoarding. A request for additional water July-made
in accordance with our water agreements, has not been answered and it
remains to be seen whether it will be net.
21.
in
Government
Stock Exchange prices have been depressed by up to 20% and the price of
gold has soared from $262 per tael to about $290 depending on the day to
day situation. expenditure has increased though not too significantly at
present; a more serious effect may be a fall in Government revenue later
should there be, as could happen, a slump in the economy generally, and
in particular the loss of foreign investment capital.
Conclusion.
22.
This,
This crisis is by no means over. We have weathered the initial storm
pretty well; and, at the time of writing, appear to have forced the
Communists to think again. however, the local hard core are doing with a
malevolence probably enhanced by their initial failures, future lie
in main
The keys to the
e in itself;
and in our
for if our economy fails, all fails with it ability to continue to do
business; and, finally, in the attitudes towards us of a China in
convulsions.
I have the honour to be,
Sir
Your most obedient, humble servant,
SECRET
Anmer
GOVERNOR.
יו
1st
R.11) (D)
CONFIDENTIAL
INWARD TELEGRAM
TO THE COMMONWEALTH OFFICE
(The Secretary of State)
FROM HONG KONG (0.A.G.)
Cypher
D. 10 July, 1967. R. 10
11002
IMMEDIATE CONFIDENTIAL No. 999.
Addressed to Commonwealth Office
Repeated
#
H
RECEIVED
ARCHIVES No.31:
11 JUL 1967
FD!|!
Ured for pa
Peking No.402, POLAD Singapore No.229, Washington No.221 and Canberra
No.58
бсе
(Commonwealth office please to all PRIORITY)
Sitrep as at 101800.
There were, in addition to the Sha Tau Kok clash, six minor
demonstrations in Hong Kong on Saturday 8 July. During Sunday 9 July
there were a series of scattered insidents, mainly on the island, on the
same lines, which appear to have been deliberately created in the hope
of Angmarating the situation
2.
On Saturday at midday students from Communist- controlled schools in
groups of 150-200 staged three demonstrations on Hong Kong island and
one in Kowloon. These were short, well disciplined and dispersed quickly
of their own accord. In each case they were held in the vicinity of a
mainland products store and it is probable that had the police had to
disperse them there could have been serious totiater attacks from these
stores. At about the same time a similar demonstration was ataged on the
island by employees of the C.P.G.-owned commercial press near their own
building. At 20.30 hours there was a repetition on a smaller scale,
again on the island, outside a China products store. There is no
indication that these demonstrations had any connection with the Sha Tau
Kok incident. Their aim appeared to be to boost Communist morale and
discipline and to provide propaganda material.
3.
On Saturday, trouble broke out in the late afternoon and was on Hong
Kong island and was centred mainly in the eastern distalets of North
Paint and Wanchai. The focal point was the
takes Company which was usel
demonstratore who retreated inside when police arrived, emerging again
and again to cause trouble. In the western district a police unit was
attacked while debussing to investigate a student demonstration. Iron
bars and cargo hooks were used by the crowd, The police
/opened
CONFIDENTIAL
CONFIDENTIAL
:
By 2230
opened fire in self defence injuring three of the crowd,
Police had three casumities including one killed in the meles. violence
had grown in the eastern district with the crowds stopping and
es, setting one bus on fire, demonstrating outside a Right-wing
newspaper and threatening to set fire to buildings. Three American
servicemen were also chased. Crowds dispersed by police action including
the usa off 2AB, continually reformed until shortly after midnight when
the ringleader of a hostile group, which refused to disperse, was shot
and killed by the police. Shortly after this, order was restored. During
this time,
there were three minor incidents in Kowloon, where several buses were
also attacked, one being set on fire. Total casualties
Iliane killed, ten policemen and three others injured. There were 22
arreste.
4.
The characteristics of the last two days' demonstrations were the use of
students in comparatively minor demonstrations as bait in the area of a
mainland store or office with an ambush party ready to take on the
police when they arrived. The violence which developed marked a new
phase. It is of interest that there was little support from the general
public on the island; although some hooligans joined in, the response
was much less than occurred in May in Kowloon. The reasons for this new
violent development is probably frustration over previous
juveedus, though the incident at Sha Tau Kok
may have had some influence.
Situation in Sha Tau Kok.
5.
WAS
thrown into British territory slightly injuring a Gurkha ( so? Mor. The
local commander arranged for the police
to broadcast a message by loudspeaker to the local Chinese commander
seeking his co-operation in preventing incidents like this. Only
response was broadcasting by the Chinese of the Peking Note on Sha Tau
Kok incident. The majority of inhabitants of British territory have now
voluntarily withdrawn to stay with friends deeper inside new
territories, If all continues to be quiet, they may well return. If not,
Sha Tau Kok
Sha Tau Kok (B.T.) may become a virtually dead town a sort of no man's
land.
6.
There have been several reports that formal applications are to be made
by relations or their authorised representatives for the handing over of
the bodies of the original seven dead men. The presence near the
mortuary of a large number camerenen and reporters mainly from
pro-Communist papers during the day seemed to confirm that such a move
was planned. Nothing, however, eventuated.
7.
There were no incidents until just after 16.00 when a crowd of about 400
formed near the Star Ferry, Kowloon, probably coming from the large
C.P.G. owned building opposite. They beat up a bus driver and a European
soldier, then moved up Nathan Road shouting slogane and stoning buses
until dispersing without further incident in the Jordan Road area, The
soldier was admitted to hospital suffering from slight concussion.
(Passed as requested)
CONFIDENTIAL
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C
CONFIDENTIAL
(Advance copies passed to Private Office, Commonwealth
Secretary and Messrs. de la Mare, Wilson, Bolland,
and Denson, F.E. Dept. Foreign Office and
Kr. Giover, News Dept, Downing Street.)
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t
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Mr. Bolland
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Mr. Foggon
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Export Credits Guarantee
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H
H
H
Kr. C.P. Rawlings
(Room 7365)
Room 7163)
11 Room 5131)
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Mr.
(CRE 4) - Mr.
Hong Kong Government Office Commonwealth Office
Mr. Henn Major Koe 1.0.2.
J.A.B. Darlington B.E.P. MacTavish
(News Dept.)
Foreign Office
(News Dept.)
-
Mr. P. Sedgwick
Mr. Glover
Duty Officer
CONFIDENTIAL
(155
SECRET
INWARD TELEGRAM
TO THE COMMONWEALTH OFFICE
(The Secretary of State)
FROM HONG KONG (0.A.G.)
RECEIVED IN ARCHIVES No.31
10 JUL 1967
FD!|!1
Cypher
D
R.
7 July
7 July, 1967.
+
11302
ра pa ..
PRIORITY SECRET No. 979.
Addressed to Commonwealth office.
Repeated
H
H
"Peking No. 389.
"P.A. Singapore No. 218.
"Washington No. 212. (8. of 8. please
pase all).
151
My telegram No. 945.
H.K. Confrontation.
Following is LIC assessment of the situation as at midday 7 July,
Principal features of the Communist confrontation with Government over
the past week have been; -
(a) The continuation of the strike in public transportation,
utilities, port facilities and the textile industry. Despite Communist
attempts at intimidation and bribery of workers, there has continued to
be a steady return of strikers to work and services to the public, in
the transport field, are gradually improving, Most of the companies
affected by the strike are taking on new labour but in the case of the
bus companies, particularly in Kowloon, it will be some time before a
full service can be resumed. Work in the harbour which was slightly
disrupted for some time as a result of a refusal of motor boat and
lighter crews to work on the ships in midstream, is now practically back
to normal. In a general attempt to keep the strikers from returning to
work the Communists have now standardised their strike
pay (apparently for the month) at 500 dollars per man
and have offered to subsidise alternative accommodation for workers who
are evicted from company quarters as a result of their dismissal.
(b) The disruption for four days of food supplies from China
(paragraph 2 (B) of telegram No, 945 refers). On the whole, this strike
had surprisingly little effect on the local community Indeed apart from
a shortage of pork and eggs and a rise in price of vegetables and some
other
/types
SECRET
SECRET
types of food it was hardly noticed. Supplies from China resumed on the
2 July, and for the past few days there has been a glut of food on the
markets, resulting in a drop of prices. Some pressure, however, has been
exerted by the Communists on dealers in and carriers of food from China
in an attempt to ensure only those who fully support the confrontation
handl CPG goods and produce. Dealers in poultry and eggs who did not
close during the stoppage are being black- listed and told that they
will receive no further supplies of these commodites from China.
(c) An attempt to call a one day strike in local bakeries
on the 4 July met with little success and only a few of the smaller
bakeries closed down completely.
(a) The holding of memorial services by individual Communist
organisations for workers who have died in the confrontation. There has
been considerable talk over the past few days in various Communist
spheres of a mass funeral procession for the three "martyrs" who died as
a result of incidents on the 8 June. (See my telegram No. 831) whilst
the Communist leadership is reluctant to risk another major
confrontation on the streets it could be forced to give way to pressures
from below.
(e) The visit of three small student delegations to the
head office of the Education Department to protest about the arrest of
students by the police, One of these delegations chanted slogans for a
few minutes and put up a number of posters on the building before
departing.
(f)
Propaganda in the local Left Wing press has continued to make
exaggerated claims about the success of the strike action undertaken by
the Communista.
The police force remains the major target for attack and following the
charging of three policemen with "inflicting grievous bodily harm" on a
prisoner, the Communist press has, in an attempt to split the force,
claimed that these three are being made "scapegoats" Senior Chinese
police officers have received letters purporting to originate from
friends of an ex-police superintendent who was deported in 1962 for
involvement in Chinese Intelligence Service activities. They call on the
addressees to "change sides in the present struggle".
(g) A "Peoples Daily" editorial on the 5 July, subsequently
reprinted in a special edition of the local Left Wing press, which calls
on "compatriots" in Hong Kong to persist with the struggle until victory
is achieved. Mention is made also of "mobilising the several hundred
thousand students"
(h) A number of very minor incidents on the border such as
Betting off a firecracker at Sha Tau Kok near the police post and the
haranguing of officers on duty near the border, no injuries or damage
resulted from these incidents.
(1) Meetings of representatives of Communist banking and
commercial organisations and businessmen who have dealings with CPG
trading agencies, at which the
/general
SECRET
SECRET
2.
general manager of the Bank of China announced that the next move in the
anti persecution struggle would be the refusal by "compatriots" to pay
taxes and fees of any kind to the Hong Kong Government.
Reliable information shows that the local Communist leaders are somewhat
concerned about the morale of the strikere, many of whom apparently wish
to return to work. Others have been classified as greedy because they
were asking for increased strike pay.
The expense of continuing to subsidise strikers is worrying the
Communist hierarchy. A senior Communist has said they could not afford
to pay out more money. Nevertheless, there is no doubt that they intend
to continue with their confrontation. The incitement of pro Communists
to refuse to pay taxes could become a direct challenge to Government
authority, and foreshadow a broader civil disobedience campaign.
30 Although the four day disruption of food supplies from China did not
achieve the success anticipated by the Communists, the present attempt
to tighten control over dealers and carriers of mainland produce could
presage further disruption of supplies Any prolonged interference with
food, however, would not only antagonise the local populace but have an
adverse effect on China's economy.
+
4. The Peoples Daily" editorial of 5 July will give further
encouragement. to the local Left Wing leaders and the call to "mobilise
the students" may result in an increase in activity in this field which,
up to the present, has played a relatively small part in the
confrontation. There is no promise in this editorial of any further
assistance from China and information from reliable sources continues to
show that the local Communist hierarchy realise that they will have to
rely on their own efforts to achieve success in the present "struggle"
with the Hong Kong Government. However the more militant of the rank and
file still harbour the delusion that the Chinese Communist army will
intervene if the situation so demanda. This may account for Communists
at union level seemingly seeking a head on collision with Government
through the medium of a funeral procession for the "three martyrs"
whereas the leadership shows little enthusiasm for such an event. We
would be faced with a serious security problem if, once more, those in
"authority" in the local Communist movement bow to the will of "the
masses" on this issue.
5. In broad terms however the situation at present is well under
Government control. So far none of the Communist attempts to exert their
will has met with the success anticipated. Indeed over the weeks the
Communists have alienated the general public through interference with
essential services and food supplies and their representation in many
essential services has been decimated. Although their aim is clearly to
wear down the Government, many of their rank and file are becoming
restless. Any apparent inability of the Communists to continue to
subsidise strikers could well undermine yet further the morale of their
supporters,
(Passed as requested)
(Advance copies passed to Messrs. Wilson, Bolland, de la Mare
and Denson and Private Office Commonwealth Secretary)
SECRET
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Treasury
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Board of Trade
++
Dept.
Rm.7163 Rm.5131)
(CRE 4)
Hong Kong Government Office
-
- D.1.0., J.I.R.
-
P.S. to Mr. Rodgers Mr. de la Mare
Mr. Bolland
Mr. Wilson
Mr. Foggon
Mr. D. Hawkins
Mr. C.P. Rawlings
Mr. Henn
Major Koe
1.0.2
Mr. J.A.B. Darlington Kr. B.E.P. MacTavish
- Mr. P. Sedgwick
SECRET
Rie 117 (154)
SECRET
OUTWARD TELEGRAM
FROM THE COMMONWEALTH OFFICE (The Secretary of State)
TO HONG KONG (0.A.G.)
: RECEIVED IN
ARCHIVES No.31
1 0 JUL 1967
FDI
Cypher
Sent 7 July, 1967.
2231 Z
D
IMMEDIATE SECRET
No. 1388
Addressed to 0.A.G.Hong Kong Repeated
Peking.
Your telegram No. 972.
153
We agree with view expressed in last sentence
of your paragraph 4. We hope that need to take such action will not
arise; but if a situation of the kind envisaged in your paragraph 3
should develop, we must accept any action either by the Court or the
Attorney General as inevitable,
(Passed to D.S.A.0. for repetition to Peking.)
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===
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Export Credits Guarantee
D.I.O., J.I.R. P.S. to Mr. Rodgers
Mr. de la Mare
- Mr. Bolland
Mr. Wilson
Mr. Denson
Mr. Foggon
Mr. D. Hawkins
Dept. - Mr. C.P. Rawlings
Ministry of Defence
#t
H
Fr
(Room 7365)- Mr. Henn
Room 7163)- Major Koe (Room 5131)- M.0.2.
Board of Trade
" (CRE 4)
Mr. J.A.B. Darlington Mr. B.E.P. MacTavish
Hong Kong Government Office Mr. P. Sedgwick
SECRET
SECRET
INWARD TELFORAM
TO THE COMMONWEALTH OFFICE (The Secretary of State)
ROOM 117 (153)
RECEIVED IN.
ARCHIVES No.31
LC 1967
FD1/1
FROM HONG KONG (0.A.G.)
Cypher
D. 6 July 1967
IMMEDIATE
R. 6
09052
SECRET
Reply
ра
No.972
87
Addressed to Commonwealth Office Repeated
"Peking No.387
(C.0. please pass IMMEDIATE)
Your telegram No.1038.
As you are aware from my telegram No.948 one police corporal and two
constables are in gaol custody charged with causing grievous bodily harm
to a man in police custody. They are expected to appear on remand before
a magistrate on 7 July, when it is likely that they will also be charged
with murder of another prisoner in the cells.
2. On 30 June, following Communist press comment, the Attorney-General
found it necessary to issue a warning to the press that nothing
whatsoever should be said in public which could in any way deny the
three policemen a fair trial. Between 1st and 3rd July the Communist
press has challenged this warning by saying that the charged policemen
were deliberately being used as scapegoats by this Government and their
arrest was but a trick to terrorise the public under a pretence of
demonstrating the "fairness" of British justice.
3. There is a definite possibility that one or more of the Communist
newspapera may at any time commit a grave contempt of court of the kind
that constitutes interference with the due administration of the law and
the prevention of a fair trial. In these circumstances it may become
necessary for the Attorney- General to take rapid action and equally the
court or the defence may do so.
4. It is difficult to forecast the outcome of such action but there is a
risk that it might lead to a major confrontation with the Communist
press since even the service of a writ might call for strong police
action. On the other hand, this may be as good ground as any for taking
the initiative against the excesses of the Communist press.
5. I will keep you informed of developments but it may be necessary to
set quickly.
(Passed as requested)
(Advance copies passed to Messrs. de la Mare, Wilson, Bolland, and
Denson and Private Office, Commonwealth Secretary)
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Export Credits Guarantee Dept. Ministry of Defence (Rm.7365)
Rm.7163) Rm.51 31)
Board of Trade
(CRE 4)
Hong Kong Government Office
Mr. Foggon
Mr. D. Hawkins
Mr. C.P. Rawlings - Kr. Henn
Major Koe
1.0.2
Mr. J.A.B. Darlington Mr. B.B.P. MacTavish Mr. P. Sedgwick
SECRET
CONFIDENTIAL
INWARD TELEGRAM
TO THE COMMONWEALTH OFFICE (The Secretary of State)
11
152
FROM HONG KONG (0.A.G.)
Cypher
D. 5 July 1967
R. 5
1032Z
IMMEDIATE CONFIDENTIAL
No.971
Addressed to Commonwealth Office Repeated to:
Peking No. 386
RECEIVED IN ARCHIVES No.31
JUL 1967
1/7
FD1/1
POLAD Singapore No.217 Washington No.211
Canberra No.57
(S. of S. please pass to all)
The general situation remains quiet, the main problem in the immediate
future being the possibility of a major clash over the funerals of the
seven men, three of whom the communists have widely exploited as
"martyrs". An attempt is being made to restrict the movement and sale of
mainland products to known communists' supporters. There has been a
small demonstration by students.
2. Pressure seems to be building up for a major communist effort to mark
the funerals, particularly of the three "martyrs" who died as a result
of incidents at the Government workshops and the gasworks in Kowloon on
8 June. (Our telegrama Nos.831 and 875 refer.) The local leadership is
probably reluctant to risk another major confrontation but could again
be forced to give way to pressures from below as has been the case in
the past.
3. Agents for mainland goods are trying to prevent anyone but
pro-communists from handling C.P.G. goods and produce. Some success has
been achieved in the transport field and pressure is being brought to
bear on retailers particularly those handling poultry and eggs, over 90%
of our supplies of which come from China.
4. The public transport situation continues to improve slowly though the
services in Kowloon are still well below normal. The port is operating
satisfactorily but there are fewer ships than usual because of the
blocking of the Suez Canal.
-
5. A minor demonstration took place outside the Education Department
near the Cathedral this afternoon. 20 30 students emerged from the area
of the Bank of China, festooned the main entrance to the Department with
posters, chanted and then dispersed before the police arrived. We may
well have other pinpricks now that the end of term is near, each of
which, however, could start a serious incident.
(Passed as requested with advance copies to F.0. F.B. Dept.
and Commonwealth Secretary's Private Office)
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