TNAG-0184-FCO40-220-Local-intelligence-committee-reports-1969 — Page 45

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HONG KONG TELNO.445 TO F.C.0.

- 3-

2. THE UP SURGE OF PROVOCATIVE INCIDENTS AT SHATAUKOK APPEARS TO BE A

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LOCAL REACTION TO RECENT LAW ENFORCEMENT IN THAT AREA AND DOES NOT REFLECT ANY CHANGE OF COMMUNIST POLICY. HOWEVER, SO FAR THE LOCAL

C.P.G. BORDER AUTHORITIES HAVE NOT ATTEMPTED TO PREVENT THESE

IRRESPONSIBLE ACTS. THE REST OF THE BORDER HAS REMAINED QUIET.

3. POLITICAL STUDY, FOLLOWING THE CONCLUSION OF THE 9TH CONGRESS,

IS THE MAJOR PREOCCUPATION IN LOCAL COMMUNIST CIRCLES AND SEEMS

LIKELY TO REMAIN SO IN THE IMMEDIATE FUTURE. THE LOCAL SCREENING

OF THE C.P.G. CONGRESS FILM WILL NO DOUBT BE EXPLOITED FULLY TO HELP OVERCOME THE CONSIDERABLE DEGREE OF APATHY WHICH EXISTS IN MANY

COMMUNIST ORGANISATIONS, PARTICULARLY IN TRADE UNIONS. MEMBERSHIP DRIVES IN UNIONS ARE STILL MEETING WITH LITTLE SUCCESS DESPITE RECENT ATTEMPTS TO ATTRACT PROSPECTIVE RECRUITS BY OPENING UNION

WELFARE FACILITIES TO NON-MEMBERS. WHILE POLITICAL INDOCTRINATION

CONTINUES IN COMMUNIST SCHOOLS FURTHER EMPHASIS IS BEING GIVEN TO

ACADEMIC STUDY IN ORDER TO PREPARE STUDENTS FOR GOVERNMENT EXAM-

INATIONS. THERE HAS BEEN SOME AGITATION FOR PAY INCREASES IN

COMMUNIST PRESS CIRCLES WHERE DAILY CIRCULATION REMAINS AT JUST OVER

270,000. IN FILM CIRCLES OFFICIALS ARE ATTEMPTING TO RESUME FULL PRODUCTION BUT CONTINUE TO SUFFER FROM FINANCIAL AND PERSONNEL DIFFICULTIES. THE MAIN EMPHASIS IN COMMUNIST FINANCIAL AND COMMERCIAL ORGANISATIONS REMAINS ON DEVELOPING TRADE BUT THE RECENT PROSECUTION

OF THE BANK OF CHINA IN SINGAPORE' AND AN IMPOSITION OF CREDIT RESTRICTIONS BY COMMUNIST BANKS ON FIRMS DEALING IN MAINLAND PRODUCTS APPARENTLY AS POSSIBLE PROTECTION AGAINST DEVALUATION, MAY RESULT IN SOME LOSS OF BUSINESS. ALTHOUGH GIVEN MAXIMUM PUBLICITY IN THE LOCAL

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