CO537-5000 — Page 51

10 October 1949

TOP SECRET

JIC(FE) (49)41(Final)

ANNEX II

REVIEW BY THE LOCAL INTELLIGENCE COMMITTEE, HONG KONG

OF THE COMMUNIST BUILD UP IN THE COLONY

Infiltration of local Labour and Educational bodies:

1.

It is in these two fields that the C.C.P. has had its greatest successes and into which their main energies appear to have been directed. It may be that the actual number of C.C.P. members engaged is small, but in the absence of accurate figures it is only possible to guess. There have, however, been a number of basic factors which have greatly helped the C.C.P.

(a)

(b)

(c)

Profound disgust with the record of the Nationalist regime, and its inability to offer moral leadership.

The absence of any Third Party sufficiently inspired or organised to provide an alternative to the K.M.T. or C.C.P. (the so-called democratic parties such as the C.D.L. and K.M.T. Revolutionary Committee were soon penetrated and virtually controlled by the C.C.P.).

A natural tendency of labour unions, particularly in the heavier and mechanical trades, to look left.

2.

The capture of the imagination by the Communist successes in China.

(a)

A similar tendency in the teaching professions.

(e)

(f)

The left.

A general shortage of educational facilities. wing has not only met this want to some extent, but, in the case of the Tat Tak College, was able to provide, from among its supporters, the highest quality of teacher.

(g) The ready appeal to youth in the organisation of "secret

societies" and clandestine work.

The material on which the C.C.P. has had to work, therefore, has been eminently suitable and for about three years after the war there was no effective opposition from any quarter to the propaganda spread openly and covertly by the C.C.P. by its agents and through its sympathisers, and to proselytisation.

3.

As far

The machinery has reached a fair state of efficiency and Communists are able to work from inside the unions and schools. as the unions are concerned it is now known precisely who are their undercover agents and it may well be that many of the union officers and leaders are not the real power. They are, however, in effect, malleable for the reasons outlined in points (a) to (a) above. It is doubtful, however, if many of them are convinced Communists and they cannot be relied upon always to follow the Party Line. Secret policy

TOP SECRET