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7. Inspections were carried out on two major Communist controlled schools. The first was without incident but during the second the inspectors decided to withdraw to avoid trouble since the students were celebrating the formation of the Kwang tung Peoples' Revolutionary Committee (K.P.R.C.).
8.
The formation of the K.P.R.C. was attended by a small Hong Kong delegation and hailed by the Communist Press here. Celebration were held by Communist-controlled organisations throught the colony and posters extolling K.P.R.C. were put up in Sha Tau Kok. There is nothing to suggest that its formation will affect China's policy towards Hong Kong. However the enthusiasm and increased confidence which it has engendered locally must be expected to result in minor incidents which could quickly escalate. Dealing with Communist groups in technical breach of the law but not committing serious offences is going to present difficulties, because of the speed with which crowds can gather and become intransigent.
Foreign Office please pass Peking 79.
Sir D. Trench
DEPARTMENTAL DISTRIBUTION
C.O. H.K.Dept.
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I & G. Dept.
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F.E.D. News Dept.
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