TNAG-0067-FCO40-103-Governors--reports-1968 — Page 23

CONFIDENTIAL

THIS DOCUMENT IS THE PROPERTY OF HER BRITANNIC MAJESTY'S GOVERNMENT

CO Ref.: HWB 13/7

COMMONWEALTH OFFICE PRINT

16 May, 1968

Copy No.

63

HONG KONG: PRINCIPAL DEVELOPMENTS SINCE JUNE 1967

Governor of Hong Kong to the Secretary of State for Commonwealth Affairs

SUMMARY

1. The Communists are still continuing their campaign of opposition to the Government though the phase of violence now appears to be over.

2. In June the removal by the Administration of inflammatory posters caused numerous incidents and stoppages of work.

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3. The Communists declared a general strike on 24 June. This was entirely a political manoeuvre and did not arise from industrial disputes. It had some success particularly among the transport companies but it did not succeed in causing serious disruption.

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4. The "general strike" was followed by a four-day "food stoppage the end of June and a boycott of the port on 17 July. No major disruptions resulted from either.

5. On 8 July a mob attacked a police post near the border with China. Five police officers were killed and eleven injured. The post was relieved by army units. Encouraged by this incident, which was interpreted as military support for confrontation by the CPG (which it was not) the Communists staged widespread demonstrations and violence in the streets of Victoria and Kowloon.

6. From 12 July onwards the police mounted successive raids on Communist centres, seizing stocks of weapons and subversive literature and disorganising Communist leadership. As a result Communist action noticeably decreased and was virtually confined to the planting of bombs. On Christmas Day bomb attacks also ceased.

7. Children from Communist schools in the Colony were increasingly employed in confrontation. A school that was being used as a centre for manufacturing bombs was closed in November.

8. There was a severe drought during the summer. Water supplied from China by agreement was turned on at the due date (1 October) but there was a possibility that it might be cut off. Given average rainfall the Colony's own resources are sufficient to continue to provide an adequate, though rationed, supply.

9. The CPG continued to issue protests following confrontation incidents. In August the British Embassy was sacked in retaliation for the arrest in Hong Kong of NCNA reporters and the suppression of pro-Communist newspapers. It was, however, increasingly plain that the CPG was not prepared to intervene directly in Hong Kong.

10. Conditions in many areas of China deteriorated during the summer. Because of the resulting disruption of communications the import into the Colony of foodstuffs from China was severely affected between July and September. Comparative order has been restored in China by the army though the disorders in Kwangtung delayed the opening of the Canton Fair by one month.

11. There is evidence that the influence of Chou En-lai and the moderates in Peking is increasing.

20501-64 8855-6

CONFIDENTIAL