CONFIDENTIAL
- 3-
13.
Substantial problems remain to be overcome, the most important being the administration of resettlement estates; the very large number of hawkers who provide a useful service, but create a serious health and traffic problem; and the large numbers of illegal mini-buses which came into existence when normal bus services were unable to meet public demand.
14.
These problems, together with deficiencies still to be remedied in our social services, provide an opportunity for Communist exploitation which is not being overlooked. The Communists have reduced the virulence of their propaganda attacks and have progressively sought to restrain their supporters from openly breaking the law, but their objective of dominating the Government remains unchanged. The adoption of a softer line has not helped them to maintain the morale of hard-core Communists. During the disturbances some 15,000 workers in the government service or in the public utilities went on strike or were dismissed. The Communists paid large sums in "strike pay" and then sought unsuccessfully to enforce the reinstatement of the "strikers" without loss of benefit or seniority, but were eventually obliged to put pressure on the "strikers" to find their own jobs.
By the end of the year the majority had succeeded in doing so, and strike pay had virtually stopped, with the result that numbers of workers deserted their unions.
15.
There has on the other hand been a disquieting expansion of Communist schools, which, while catering for only 2% of the school population, showed a 25% increase in places during 1968; plans are in hand for further expansion. Communist schools can cater for only about one third of the children from Communist families and they attract few from outside the fold. Under pressure from parents, some improvements have been made in the academic content of curricula but political indoctrination still plays an important part and there is close control over extra- curricula activities.
16.
The border has been relatively quiet and the Chinese border authorities exercise strict control over emigrants, but there remains always the possibility that control might be relaxed. At sea, fishermen who wish to fish in Chinese inshore waters are subject to economic pressures and political indoctrination, while in June, 1968, 70 fishermen were abducted in Deep Bay, of whom three have yet to return.
17.
About 250 "confrontation prisoners" are still in prison, including 11 "newsworkers" whose imprisonment is associated by Peking with the detention of Mr Anthony Grey. All 52 detainees have been released.
CONFIDENTIAL
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