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from China, This is borne out by a meeting of the all circles Anti-Suppression Committee, Propaganda Section, held on 4 June, at which it was stated that the "struggle" would be carried on by means of economic, political and propaganda pressure'.
On the other hand, the editorial is likely to be interpreted by the militants as being an encouragement to further struggle to the rank and file Communists, and may make it increasingly difficult for the more moderate of the local Communist leaders to exercise restraint.
3. We expect, therefore, that the main force of the struggle will continue to be directed through the propaganda field though it is possible that more extensive and widespread simultaneous strike action will be taken. In contrast, the suspension of employees of the Marine Department following their participation in illegal strike action, may serve as a warning to potential strikers, particularly if local employers follow Government's lead.
4. In order to maintain the initiative, legal action against selected C.P.G. concerns still displaying inflammatory material is under consideration and it is to be hoped that this will cause the others to remove the inflammatory material of their own volition. If it is taken, the protest by the N.C.N.A. may indicate that there would probably be resistance, possibly physical.
5の In the final analysis, Peking holds the key to the present unsettled situation. But during the past ten days has only given propaganda support to the local Communists and it is, perhaps, significant that no new demands have been made bf the Hong Kong Government. Accounts of disorder approaching anarchy in China multiply, however, and it may be more difficult for Peking now to exercise firm control over local Communist hot-heads, either in Hong Kong or Kwantung, and there is always a possibility that extremist groups in Kwangtung might try to come to the aid of their fellow Chinese here.
However, military control of the border remains firm.
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