SECRET
Hong Kong telegram No. 72 to Commonwealth Office
2
2. The Police Force is gradually reverting to normal duties and there was no noteworthy action against local Communists. Education Depart- ment staff carried out inspections at eight minor Communist controlled schools during the week. Mao quotations were prominently displayed a all schools and students were heard chanting 'Revolutionary' songs, but no inflammatory material came to notice. Protests concerning 'persecution' by Government were made by hostile parents and teachers. The inspections have not attracted any comments in the Communist Press so far and, in general, there was not the same degree of hostility as was displayed during the inspections of the major Communist schools in September and October last year.
3.
On 11 January Government announced an amnesty promising immunity from arrest for any member of the public who surrenders weapons, explosives or fireworks during the fortnight starting at midnight 14 January. This has been well received by the right wing and neutral Press and the general public. The Communists seem to have been caught off balance and their reaction, so far, has been limited to sparse re- ferences in the Communist Press.
4.
Reports from several reliable sources indicate that the impression is growing in local Communist circles that Peking has instructed a cessation of violence because talks on confrontation are being sought by the Hong Kong Government or are in progress between the C.P.G. and the British Charge d'Affaires in Peking, during which the British are expected to make considerable concessions, including the release of confrontation prisoners and a curb of K.M.T activities in the colony. It is not clear whether this is a genuine belief, or propaganda line to explain the current situation, but there are obvious dangers, not the least of which could be the reactions of more militant local ele- ments if it becomes apparent that no major concessions are being made (telegram 46 refers).
5.
ON/IS0160/51/02
Reports available in Hong Kong indicate that the P.L.A. in Kwangtung is carrying out its difficult task generally in an efficient manner, but the disturbed conditions there still represent a potential danger to Hong Kong.
6.
The decision to reduce the subsidies to the Communist Press, pre- sumably in an attempt to conserve foreign exchange, may well affect other C.P.G. concerns in Hong Kong resulting in further economy measures and impel them to do everything they can to make themselves financi- ally viable. The activities of Communist organisations over the past week particularly in the Labour field, indicate clearly that, although the policy of non-violence has been accepted, the local Communist move- ment has no intention of abandoning its confrontation with the Hong Kong Government, and peaceful 'demonstrations' aimed at attracting maximum publicity, must be expected to increase.
SECRET
/F.0.
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