CYPHER/CAT A
SECRET
48%
IMMEDIATE GOVERNOR HONG KONG TO COMMONWEALTH OFFICE (D.T.D.)
RECES
IN
AD
Ano 1406
19 September 1967
43
19 2. Plze
SECRET
Addressed to Commonwealth Office telegram No.1405 of 19 September. Repeated for information to POLAD Singapore, Canberra, Washington.
For Commonwealth Office and Cabinet Office for JIC from LIC.
Weekly assessment
My immediately preceding telegram: Part II.
2. Police action against Communist organisations and premises has continued, in the course of which further quantities of inflamm- atory posters and documents, bomb making materials and crude weapons were seized. A number of members of Communist unions and a rural committee member were arrested in connection with these seizures.
30 Two further inspections of Communist-controlled schools were carried out without incident (my telegrams [gp. undec ? 1385] and 1395). HWA 9/17 ..
\HUA 3/12
40 There are indications that the local Communists have been attempting to promote a demonstration outside the airport on Friday 22 September to coincide with the return from leave of his Excellency the Governor. It is of interest however that when this project was aired at one union meeting, only one third of those present signified their willingness to participate, this would appear to be another indication of the low morale in local Communist circles, and the reluctance of the Communist rank and file to risk coming into conflict with the security forces.
5. The PLA assisted by the militia appears to continue to exercise strict control over movements in the zone north of the border though there has been some increase in the number of illegal immigrants crossing the frontier - 14 entrants by land and 9 by sea have been arrested in the past week. In Canton there have been reports of renewed fighting on 14th and 15th September and the PLA have extended to 24th September the date by which arms must be handed in by the rival factions. Further clashes in Canton could lead to a build-up of refugees but providing the strength of the PLA in the border zone is maintained and no restrictions placed on the use of its weapons, it should be capable of preventing any attempt at mass exodus.
6. There are signs of a modification of the CPG attitude towards the Colony in economic matters. There is evidence that CPG banking authorities are now willing to transact business with banks outside the CPG group and are seeking to re-establish old contacts in both the banking and commercial world. Food supplies have improved markedly; of the large number of pigs received, some came from Honan, and this implies that the railway has been re-opened to the north. It is reported that supplies of mainland rice are to be resumed on a scale sufficient to make up for past arrears and
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