TNAG-0038-FCO40-74-Border-incidents-with-China-1967 — Page 58

CONFIDENTIAL

Hong Kong telegram No. 1253 to Commonwealth Office

-2-

Economic Situation.

4.

Information on the economic situation in the Province

is patchy, though local food shortages have been noted. In Canton itself where black markets and food tickets (from 1 August for genuine residents and bona fide visitors) are reported, there has been a noticeable deterioration in supplies. Food supplies to Hong Kong are still being despatched, but only to the extent that the chaotic transport situation permits. Little is coming from Canton itself.

Conclusion.

5. The P.L.A. remain reluctant to commit themselves to either side in the revolutionary struggle. There is unlikely therefore to be any improvement in the public security situation. If the present disorders spread to the countryside the risk of large numbers of refugees trying to get to Hong Kong is a very real one.

Please pass to Washington as telegram No. 266.

Officer Administering the Government

Sent 03142 17 August 1967 Recd 03162 17 August 1967

[Repeated as requested]

DEPARTMENTAL DISTRIBUTION

C.O. H.K. & W.I. Dept. "C"

I. & G. Dept.

News Dept.

F.0. Far Eastern Dept.

J.I.P.G.D.

J.I.R.D.

Overseas Labour Adviser

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CONFIDENTIAL