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-44-
WITH END OF TERM EXAMINATIONS. SO FAR THERE HAS BEEN LITTLE
INDICATION OF SUMMER HOLIDAY ACTIVITIES AND MANAGEMENTS
ARE PLANNING ENROLMENT DRIVES FOR THE NEXT ACADEMIC YEAR. THERE IS EVIDENCE OF MORE DIRECT N CN A CONTROL IN LOCAL COMMUNIST PUBLISHING AND FILM CIRCLES WHERE CONSIDERABLE PERSONNEL
AND FINANCIAL DIFFICULTIES HAVE BEEN EXPERIENCED FOR SOME TIME.
THE COMMUNIST PRESS WITH A STEADY CIRCULATION OF JUST OVER 278,000
APPEARS TO LACK A STRONG LOCAL PROPAGANDA THEME ALTHOUGH ATTACKS
ON GOVERNMENT APPEAR DAILY AND THERE WAS LIMITED EXPLOITATION OF THE INCIDENTS AT THE FOOTBALL MATCH ON 16TH JUNE (TELEGRAM 488)
AND A SHORTLIVED STRIKE BY LORRY DRIVERS IN PROTEST AGAINST
FINES IMPOSED BY THE COURTS. COMMUNIST BANKING AND COMMERCIAL
CONCERNS ARE REPORTED TO BE ENCOUNTERING DIFFICULTIES IN THEIR
ATTEMPTS TO EXPAND BUSINESS DUE TO RESTRICTIONS ON CREDIT
AND SOME SHORTAGE OF CHINA. PRODUCTS WHICH HAVE SHOWN A GENERAL
COMMUNIST PROPAGANDA INCREASE IN LOCAL PRICES DURING RECENT MONTHS.
HAS MEANWHILE GIVEN CONSIDERABLE PUBLICITY TO PORTRAYING THE NEW RMB DESIGNATION FOR C P G CURRENCY AS SIGNIFYING ITS STRENGTH
IN THE INTERNATIONAL MONETARY WORLD.
(F C 9 PLS PASS TO WASHINGTON AND CANBERRA)
SIR D.TRENCH
FILES H.K.D.
P.U.S.D.
F.EAST. DEPT.
GUID DEPT.
CONS DEPT.
O.L.A.
O.P.A.
I.R.D.
REPEATED AS REQUESTED] [SENT TO CABINET OFFICE]
SIR A.GALSWORTHY
MR. MORETON
SIR E.PECK
MR. BURROUGHS
ADVANCE COPIES SENT
P.S. TO LORD SHEPHERD
I.P.D.
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