CO537-6578 — Page 68

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additional local Chinese support, but it would forfeit any hope of Malay, Indian, Tamil or Indonesian support, and would also damage its propaganda value in the world a t large. Nevertheless, official British publicity should not attribute direction of the Communist Terrorist Movement

in Malaya to the Peking Government, unless and until that government engages in acts which demonstrate that it is, in

fact, directing the campaign or makes a clear statement

to that offect.

5.

It is desirable to keep separate the issues of Communist subversive activities in Malaya and the relations of H.M.G. with the Peking Government. It is therefore important to continue to emphasise that our recognition of the Peking Government has been accorded because the latter has become

the effective Government of China.

Through official channels

For we

and

the line on internal developments in China should be that what happens where is the business of the inhabitants of the country. 6. We may continue, however, to make it clear that our rocognition and, if our policy develops in that direction, our possible support of the Peking Government's candidature at U.N.O do not mean that we approve of Communism.

#9

consider Communism to be the means whereby the Russians, their Chinese Communist friends, seek to expand and to dominate all Asian territories. As such, Communism is the enemy of all genuine nationalism, since it seeks the domination of nationalism by alien influence. This alicn influence has, through the agency of Communism, established itself in the countries of Eastern Europe,

and

it will seek to establish itself in China and elsewhere in

Asia in the same way.

7.

The danger in China is Russian penetration and domination. It is essential, until further notice, to avoid any suggestion that any tendencies towards Titoism or

/independence......