0003160 G.F. 316
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by studying the works of MAO and by magnifying minor incidents. It also criticised the "comrades in Hong Kong" for not seizing on the Chai Wan incident (see paragraph of this report), magnifying it and "turning it into a full scale struggle". Left-wing circles refused to accept the letter as genuine and claimed that it was a forgery perpetrated by the U.S./CHIANG clique who they stated were trying to stir up trouble. The contention that the letter is a forgery is undoubtedly true; no such Sub-Bureau exists and there is nothing to suggest that the letter was issued by any communist official organisation. While possibly the product of irresponsible K.M.T. supporters, designed to engender a deeper apprehension in the Colony of the communists, it is not inconceivable that the document was the work of a communist crank, inspired by the success of his compatriots in Macau.
15.
Initially the right-wing press reported the events in Macau factually, though hardly surprisingly they tended to magnify the role played by the communists. However, the handing over of the seven K.H.T. agents to the C.P.G. (paragraph 8 of the Appendix refers) was the signal for strong condemnation of the Portuguese authorities.
16.
The whole affair has had an unsettling effect upon the population of Hong Kong, many of whom link the future of the Colony with that of Macau and regard the C.P.G. attitude towards Macau as a reflection of Chinese views concerning the destiny of the Colony. However this natural apprehension has not been accompanied by any marked loss of confidence here, and stability in the general banking, industrial and commercial spheres has continued. The indications are that the C.P.G. attitude towards Hong Kong has remained unchanged in spite of their demands on the Macau Government.
17.
During the month a number of groups from local communist circles visited China for short sightseeing tours. On the 12th December approximately 25 film workers left for Canton on a tour organised by the Overseas Affairs Commission, Canton Four days later a group of approximately 25 employees of local left-wing newspapers left for China on a week's tour which included a visit to MAO's birthplace. A 58 member group organised by the Chinese Reform Association (C.R.A.) for members and their families left on the 24th December for three days.
18.
Film directors, playwrights and producers of the communist controlled Great Wall Movie enterprises Ltd., held a self-criticism meeting on the 20th December. Participants made sharp personal attacks on the integrity and morality of individuals present. But the real issue appeared to be that the production of films had dropped to such an extent that only two had been produced this year. Particular blame was placed on the playwrights for not producing sufficient scripts. It is worth noting that this is the first time on record that criticism has been directed at individuals in Hong Kong in their presence; this clearly copies the standard practice in China today
19.
On the 21st December, the Workers' Children's Education Promotion Association (.C.E.P.A.) held a cocktail party at the Ying King Restaurant to celebrate its 20th anniversary. Some 900 persons attended and heard the Chairman of the W.C.E.P.A., MAK Fung Tak (7796/6646/1795), thank everyone for their warm support in the 1966 fund raising campaign by the W.C.B.P.A. According to MAK, although the target had been set at only $500,000, approximately $1 million has been raised (L.I.C. report for March 1966, paragraph 14, refers).
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