TNAG-0066-FCO40-102-Local-intelligence-reports-1968 — Page 65

SECRET

HONG KONG TAOGRAM NO. 312 TO COMMONWEALTH OFFICE

5.

PURPOSE CRELIEF TO RAIN VICTIMS RATHER THAN UNEMPLOYED) COULD

PRESENT

1M WITH A SUFFICIENT 'VICTORY', AT LEAST FOR THE TIME BEING, TO

PROVIDE A LET-OUT ON THE RICE QUESTION.

4. THE ABSENCE OF ANY REFERENCE IN THE COMMUNIST PRESS TO

GOVERNMENT'S ANNOUNCEMENT ON GPS OMITTED] ALLIED TO THE MANNER IN

WHICH SOME OF THE PAPERS HAVE REFLECTED THE GOVERNMENT OFFICIAL'S

UNAUTHORIZED SPEECH ON RE-EMPLOYMENT, SUGGESTS THAT THIS RATHER

THAN REINSTATEMENT MAY GRADUALLY BECOME ACCEPTABLE FOR THE MAJORITY

OF STRIKERS. THIS WOULD BE IN LINE WITH STEPS ALREADY TAKEN

IN CERTAIN LABOUR SPHERES SUCH AS THE TEXTILE INDUSTRY AND SOME

SECTIONS OF THE MAJOR COMMUNIST TRANSPORTATION UNION (PARAGRAPH 1(C)

OF TELEGRAM 596).

5. TRAVELLERS FROM CANTON REPORT THAT FACTIONAL CLASHES AND GENERAL

LAWLESSNESS CONTINUE IN THE CITY. SEVERAL HAVE SAID THAT THE CANTON

AUTHORITIES HAVE THREATENED TO USE FORCE AGAINST STUBBORN FACTIONAL.

ELEMENTS: VIOLENCE OUTSIDE CANTON APPARENTLY CONTINUES. FLOODING

HAS BEEN REPORTED IN A NUMBER OF AREAS IN KWANGTUNG, AND ALTHOUGH

RAIL TRAFFIC BETWEEN CANTON AND THE BORDER HAS NOT BEEN DISRUPTED,

PRODUCE IS ARRIVING FROM CHINA BY RAIL AT A SLIGHTLY REDUCED LEVEL.

ADVANCE COPIES SENT.

NATON

CO PLEASE PASS WASHINGTON 85 AND CANBERRA 56.

SIR D. TRENCH

FILES

C.O.

[REPEATED AS REQUESTED

PASSED TO CABINET OFFICE].

H.K.D.

I. AND G.D.

F.E. AND P.D.

SIR A. GALSWORTHY

P.S. TO LORD SHEPHERD

F.0.

F.E.D.

MR. WILKINS ON

U.L.A.

U.P.A.

I.R.D.

I.P.D.

GUIDANCE DEPT.

SECRET