TNAG-0066-FCO40-102-Local-intelligence-reports-1968 — Page 55

SECRET

HONG KONG TELEGRAM NO. 864 TO COMMONW ALTH OFFICE

-3-

GIVING UP THE CAMPAIGN THERE. IT MA E THAT LOCAL LABOUR LEADERS

HE THAT MANY 'STRIKERS WILL BE EMP OYED BEFORE THE 1ST OCTOBER

CELEBRATIONS WHEN THEY CAN CLAIM A 'V CTORY', ALBEIT A HOLLOW ONE,

FOR THE LABOUR MOVEMENT. PRICE TO CONFRONTATION SOME 90% OF THE

EMPLOYEES OF THE HONG KONG GAS COMPAN CPARA 1CC) REFERS) WERE

MEMBERS OF THE COMMUNIST UNION BUT ONLY ONE THIRD SUPPORTED THE

STRIKE LAST YEAR LEAVING A LARGE NUMBUK STILL IN EMPLOYMENT THERE.

WHILE ONLY A SMALL NUMBER OF THESE ARE STILL ACTIVE IN THE UNION

THIS UTILITY IS THE BEST TARGET AT PRESENT FOR COMMUNIST INFILTRAT-

ION AND, ALTHOUGH NOT AMONGST THE MOST IMPORTANT OF THE ESSENTIAL

SERVICES, CLEARLY ILLUSTRATES THE DANGER PRESENTED BY COMMUNIST

REPRESENTATION IN THIS FIELD.

3. REPORTS FROM TRAVELLERS INDICATE THAT SERIOUS FACTIONAL

DISTURBANCES CONTINUE IN CANTON, AND OTHER AREAS OF KWANG TUNG. OTHER

REPORTS FROM THE SAME SOURCES SHOW THAT THERE HAS BEEN SOME

IMPROVEMENT IN THE KWANGTUNG FLOOD SIT ATION, WITH TRANSPOST SERV-

ICES RESUMING OPERATION.

CO PLEASE PASS IMMEDIATE UKREP CANBERRA AND WASHINGTON.

SIR D. TRENCH

[REPEATED AS REQUESTED]

FILES

C.O.

H.K.D.

F.E. & P.D.

SIR A. GALSWORTHY.

P.S./ LORD SHEPHERD.

F.E.D.

F.0.

MR. WILKINSON.

O.L.A.

O.P.A.

I.R.D.

I.P.D.

GUIDANCE DEPT.

SECRET

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