CO537-5000 — Page 52

10 October 1949

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Annex II to JIC (FE) (49)41(Final)

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directives are issued to the C.C.P. agents in the unions. In the case of Workers' Schools agitation there is evidence that such directives were issued and acted upon, though the agitation itself did not ultimately prove a success. Other means whereby a control over the thought of the rank, and file of the unions is exercised, include the widespread organisation of Singing and Dramatic Groups. These groups exist not only in the unions themselves, but independently, thus reaching members of the general public as well.

4.

The Federation of Trade Unions, focussing leadership, greatly helps the C.C.P. to direct labour activities into required channels. At present, the policy is to build up the confidence of the contributing unions against the day when a maior test of strength is needed. Although the F.T.U. has played a role in individual strikes, it has always tried to avoid the taint of failure by early withdrawal from the scene before the strike has collapsed.

5.

There is no direct evidence of any direct penetration by the C.C.P. of Government departments at the higher levels, but there are nevertheless certain unions of Government employees which have joined the F.T.U. These include the Postal Workers Union, the Marine Départment Union and the Armed Forces and Government Hospital Workers Union.

6.

It is estimated that there are altogether 43 C.C.P. controlled or dominated schools and 82 schools. where infiltration has taken place out of some 850. The C.C.P. is believed to exercise control over schools and teachers through two central bodies. These are:

(a) The New Territories Teachers' Association.

(b)

The Hong Kong and Kowloon Teachers' Welfare Association.

It is reliably reported that there is, behind the latter, a secret C.C.P. directed education Committee of representatives of the most important Communist controlled schools and that through it policy deciding the political indoctrination in schools is planned and implemented.

7.

Even schools belonging to the K.M.T. group are not altogether free from infection.

8.

Linked to C.C.P. activity in the sphere of education are such bodies as the N.S.F.C. and the China New Democratic Youth Corps. The latter is, of course, more dangerous, being the shock troops among Chinese youth. This is a small number in proportion to the total juvenile population. Members of this can be regarded as the equivalent of the Russian Consomol.

Infiltration of civil population and organisation of Communist Party in Hong Kong and vicinity:

9.

The majority of the Chinese population of the Colony is probably adopting a policy of "sitting on the fence". Whereas it is doubtful that many of the Chinese business community are Communists, there are probably a few wealthy supporters. Some are doubtless party members; others probably contribute to the party funds as an insurance, The necessity of trading with Communist China has perhaps brought many within the C.C.P. orbit who would otherwise have no sympathy with it. The middle classes are less closely in contact with the Communist world and tend to preserve a middle inclined to right outlook. So-called

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