TNAG-0029-FCO40-65-Relations-with-China-1968 — Page 44

CONFIDENTIAL

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confined to the planting of bombs.

The last bomb attack

occurred on 25 December last. The reasons why the campaign

of violence was called off were apparently, first, that it had attracted little popular support in Hong Kong in the

face of the firm but patient policies of the Government;

second, the waning of the Cultural Revolution in China

had enabled more moderate elements in the leadership to

reassert themselves and to bring a renewed recognition of the

economic importance of Hong Kong to China. The Communist

effort seems now to have moved from violence to attempts to

increase support by finding popular grievances to exploit.

In the long run this could be potentially dangerous but the

Communists have much leeway to make up. The Colony's

economy survived almost unimpaired, the value of exports

rising in 1967 by 16.9% over 1966.

Communist Press

4. In the course of the campaigh of violence, the

Communist press was a potent factor in encouraging disorders.

By August 1967 the Governor considered it necessary to take

action against the Communist newspapers in order that their

continued publication of seditious and inflammatory material

would not be taken as a sign of weakness.

There were

successful prosecutions for sedition against the chief

executives of three minor pro-Communist newspapers and the

CONFIDENTIAL

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