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Chinese Intentions
11. There is no evidence that the disturbances were
deliberately started by Poking. They appear to have
resulted from local initiatives and to have been the
product of a more militant atmosphere maong the Communists
in Hong Kong responding to the "cultural revolution" in
China. But Faking has supported the "demands" of the local
Communists and continues to do so; and, whatever the
origins of the disturbances, Peking is now closely involved.
12.
There is no evidence of any basic chenge in China's
policy of maintaining the status quo. There are indications,
however, that Feking is undecided about how to handle the
Hong-ong issue; in an article in the People's ́aily of
3rd June "compatriots" were enjoine: to wait the call for
action to overthrow British imperialism in Hong kong,
13. This hesitancy could be the prelude to a slow und
prolonged process of backing down but it could equally
reflect the conflicting pressures in Peking.
On the one
hand there are the factors which support present Chine se
policy notably the undoubted economic benefit of Rong Kong
to China (about 40% of her foreign exchange earnings comes
from Hong Kong and is important in financing the grain
imports) end the fact that public opinion in Hong Kong has
reacted with surprising firmess to Communist action,
showing the Chinese that they cannot hope for a cheap
Vaono-type victory. On the other hand there are factors
tanding towards m extremist policy: the commitment of
Peking to the "five demands"; the pressures of the cultural
revolution call for strong action; and the considerable
confusion in the present stage of the cultur:l revolution
(with the "polerates" understrong attack and Feking not
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