TNAG-0004-FCO40-40-Departmental-briefs-about-Hong-Kong-1968 — Page 124

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the form of indiscriminate bomb placing, the murder by fire of a popular

Chinese radio personality and the earmarking of six prominent Chinese

citizens for assassination. Although the development reflects the

bankruptcy of the Communist cause, it places a considerable strain on

the police, who have throughout acted with great restraint, and on the

Service bomb disposal teams.

8. The disturbances do not appear to have been directly instigated

by Peking but rather to have been the result of local initiatives taken

in response to the revolutionary atmosphere on the mainland and a local

desire to achieve in Hong Kong a Macao-type situation. Nonetheless, the

C.P.G. have given extensive propaganda support to their Hong Kong

compatriots, and have assisted their campaign directly in such ways as

supplying strike funds and indirectly by permitting the border incidents.

But there is no indication that they propose military intervention or the

denial of food supplies to Hong Kong. Much of the Colony's food comes from

China (beef 65%, pork 87%, eggs 931%, vegetables 60%), and though supplies

have been erratic and often reduced, that is due to the disturbed political

state of Kwangtung Province and to temporary events such as border closures

and bad weather. Water has not been supplied but within the terms of the

agreement with China supplies are not due to start again until 1 October

and there is no evidence to suggest China proposes to default. In any case,

however, thanks to recent rains, the Colony has full reservoirs, sufficient

to maintain a limited supply until the end of the next dry season without

Chinese assistance. Nonetheless, contingency planning is proceeding for

alternative supplies of both food and water.

9. Hong Kong's economy may suffer some damage as a result of Communist

The extent cannot be clearly seen at the present time.

confrontation.

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