(h)
SECRED
2
Anti-British propaganda in the Communist Press, concentrated on the Colony Budget, de-registration of a Communist Union (see (a) above) the importation of 'gift rice' from China and "Fascist' police methods.
(i) The continued calm of the border area broken only by a minor incident at Sha Tau Kok on 27 February when, apparently out of sight of PLA sentries, a military patrol in British territory (B.T.) was stoned by youths in Chinese territory (C.T.).
(j) Further attempts to repatriate illegal immigrants at Lowu. All except 19 persons refused to cross into China. Meanwhile illegal immigrants continue to arrive; 231 were arrested during the week, the total for February is 766. Only two of these entered the Colony by land.
20
The cooperative attitude shown during four surprise inspections at major Communist controlled schools which took place during the week is a further indication that Communists in local education circles wish to avoid a clash with Government. However, the meetings held by the recently de-registered Union and attendant publicity in the Communist Press shows open defiance of Government; it remains to be seen whether this will continue or if, having made the gesture, the Union will either follow Government advice to seek re-registration or become absorbed by a larger Communist Union with which it is closely connected.
A
3. The apparent attempt by the Chairman of the major Communist Transport Union to persuade members to seek re-employment is of considerable interest and supports the view that Communist funds available for strike payments are getting low and that the Communist hierarchy is trying to reduce its financial commitment. It is relevant that some members of
this Union are not likely to have great difficulty in obtaining employment because of the current shortage of taxi-drivers,
4. The claims now being made at Communist Union meetings that Government has refused to allow the import of 'gift rice' could indicate that the Communists have decided not to bring the rice in under the quota conditions specified by Government. However, if they decide at a later date to accept these conditions they will no doubt claim that they have forced Government to change its stand on this issue.
5.
The heavy flow of illegal immigrants from Kwangtung Province and the refusal to be repatriated by nearly all those arrested reflects the continued disturbed conditions there. The formation of the Provincial Revolutionary Committee has so far apparently made little
SECRET
/impact
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