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There were also stoppages in the island
electricity station, two Government waterworks depots
and the Government E. and M. workshops on Hong Kong Island. In the last three cases trouble built up over the serving of interdiction letters and attempts to compel the management to accept workers already interdicted as part of the normal work-force. Further interdiction letters are to be issued tomorrow. Meanwhile the Government dockyard continues to work with a much reduced labour force and lighthouse maintenance men have remained on strike. There are indications that there may be stoppages in the telephone company, and in an urban services depot tomorrow while a repetition of disturbances in the waterworks and the E, and M. workshops seems probable.
5.
Hoarding of rice is causing concern. Prices are rising despite public reassurances that more than adequate stocks are held. Although this seems to be more of a reflex action than part of a Communist inspired campaign, I am making special efforts to deflate the artificial market. Action is being considered against those importers and wholesalers who are believed to be taking advantage of the situation. There have also been rumours that pro-Communist distributors are putting pressure on retailers, including hawkers, and threatening them with cutting off all supplies of foodstuffs unless they co-operate.
6.
Food and water supplies continue to come in from China but the import of livestock from the mainland has been disrupted to some extent by transport difficulties in China. There is a noticeable shortage of Chinese rolling stock, and wagons are doing two or more journeys into the Colony per day which is most unusual. Mainland exporters have admitted having difficulties over the railway.
7。
All the indications are that the initiative on the poster issue comes from the rank and file. The higher echelons are believed not to welcome a major confrontation at this time but appear, temporarily at least, to have lost control. There is a danger that this continued intransigence will generate a major conflict with the police. There are reports of increased bellicosity among some of the workers particularly those in Taikoo docks and on the waterfront. The next few days could well be very difficult.
(Passed as requested and advance copies to
Private Office for Commonwealth Secretary tary Messrs. de la Mare, Wilson and Bolland.)
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