CO537-4847 — Page 44

X. LABOUR.

SECRET.

Likely Communist Actions

and Policies.

(a)

It is evident that the C.C.P. will make more strenuous efforts to consolidate their control over labour. Such control will in effect amount to out- side control, since orders will be taken from the Communist directing agencies in China.

(b) Communist propaganda

towards labour move ments generally will be active. The Communist All China Labour Federation, aided by the World Federation of Trade Unions, will probably go full blast and seek to swing Hong Kong labour into their fold.

Action by Hong Kong.

To hold the situation in labour very firm and very wise action will be needed. In order to ensure that labour is effective- ly controlled it will be necessary to re-- assure the masses who are not active Communists that the authorities have the means to control the situation, and that they intend to use them. This will mean vigorous action against active Communist cells, and deportation should be used freo- ly if necessary for the sake of law and order. Under the Trade Unions Ordinance and the Societies Ordinance it may be possible to take action where direct out- side control of trade unions and associated bodies can be proved.

The weapon of counter publicity will have to be used freely and intelligently. Conditions in Communist controlled terri- tories and in Hong Kong should be contrasted. Also steps should be taken to prevent representatives of Hong Kong labour attend- ing Communist sponsored meetings in China. Where attendance at such meetings is known the persons concerned should be refused ro- admittance to the Colony.