TNAG-0012-FCO40-48-Kowloon-disturbances-1967 — Page 160

2.

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(i) an instruction to distributors from the major

C.P.G. import agency in Hong Kong dealing in livestock from China, to levy a surcharge of 10 cents per bird on poultry and 30 cents per head on other livestock, as a contribution to the All-Circles Anti-Persecution Struggle Committee funds.

There is little doubt that a strike in the transport field and a function to mark the deaths of the three workers referred to above, will take place in the near future. Contingency planning to cope with a transport strike is in hand by Government and, as in earlier attempts to call strike action, it is hoped to isolate the communist element from the neutral and right-wing workers. However, as the communists have greater support in this sphere, it is likely that their action will have some degree of success, particularly in the bus company in Kowloon, but it remains to be seen to what extent the provision of financial assistance by the communists will counteract a firm stand by the management in respect of dismissals, etc., for illegal strike action, The payment of one month's subsistence allowance to the workers before strike acti on starts suggests that the stoppage will be prolonged. In addition, it is known that the communist leadership now considers short token strikes 'valueless' in the confrontation and, once strike action commences, it can be expected to do everything in its power to extend it.

30 While there is no intention by Government to interfere with any memorial service for the dead workers if this is held indoors, a funeral procession on a large scale would be a different matter and very careful consideration would have to be given about whether it should be permitted or not. However the communist leadership favours memorial services held in premises in which the participants can be kept under control and, so far, apart from discussions, in individual organisations, there appears to be no organised plan for a procession.

40 The propaganda machine remains the communists principal weapon, although it may be that the population is becoming more aware that the anti-Government stories it publishes are, in the main, either completely untrue or highly exaggerated. This is reflected in the circulation of the communist press which, at the outset of confrontation, rose to almost double its normal figure, but has now returned, in most cases, to the pre- confrontation level. Propaganda directed at individuals not unnaturally causes some initial disquiet but here again it appears that in general terms the targets remain unaffected.

The crux,

of course, lies in the confidence of the public in Government's ability to uphold law and order and the continued display of an intention to maintain its position in Hong Kong.

5. The assessment of last week that the local communists can expect little more than financial, moral and propaganda support from China, still holds good. Although there have been no further authorative pronouncements since the 13th June from Peking on the local situation, it is perhaps too early to dwell on the significance or otherwise of this,

(Passed as requested and advance copies to Foreign Office

F.E. Department and Commonwealth Secretary's Private

Office)

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/Distribution