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1.
Hong Kong Situation
Talking Points
Background
Although the disturbances had their origin in a labour dispute in the Artificial Flower Factory in Kowloon, the local pro- Communist workers seized on it to try to humiliate the Hong Kong Government and eventually to produce a Macau-type situation under which the local Government would have become entirely subservient to Communist control.
2. The present policy of firm action against the demonstrators has maintained confidence. So far the police have stood up extremely well, but if the disturbances were to become widespread and continue for a long period, fatigue could begin to tell.
No military forces have yet been used to counter the disturbances.
3. Up till the 23 May, 781 persons had been arrested of whom 671 had been charged.
4.
Future. The main problem is to assess the Chinese Government's intentions. The initial reports indicated that the disturbances had come about on the local initiative of the Communist Chinese in Hong Kong. Mainland China has, however, reacted by supporting the "demands" of the local Chinese, demonstrating against the Peking and Shanghai Offices and closing down the Shanghai office. The most recent report is that Mr. Hewitt and Mr. Whitney, who had joined him in Shanghai, have been roughly treated by the mob on their return to Peking rougher treatment than any other diplomat, including Russian, has received in the past.
5. If there has been no basic change in Chinese policy towards Hong Kong and they are only out for some propaganda victory, there is every chance that Hong Kong could continue to hold out indefinitely.
6. On the other hand, if China has decided to try to force us to
accept a Macau position in Hong Kong, the Colony could be in for a
difficult period. On the other hand, Hong Kong is a much more
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