TNAG-0566-FCO40-699-Implications-for-Hong-Kong-of-change-in-Chinese-leadership-1976 — Page 38

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Consular Corps, including a large contingent from the United States Consulate-General and (perhaps rather surprisingly) the Indonesian Consul-General. On the second day there seemed to be rather a lull in the morning but large numbers of communist schoolchildren and workers were drummed up for the afternoon session and a further 25,000 people paid their respects. Meanwhile separate ceremonies were held for communist workers at the Federation of Trade Unions HQ in Kowloon on 15 September and at other communist centres elsewhere during the week. On 18 September at 4 p.m., Chinese shipping and some factories sounded their sirens as in China and Chinese communist shops were temporarily closed, but I cannot say that any of these observances made much impact in Wanchai, where I was having my car mended at the time not far from the NCNA headquarters. impressive were the television relays from China which brought home to the general public in Hong Kong the dignified, but disciplined, atmosphere of the ceremonies in China and in particular the climax in Tien An Men Square on 18 September.

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In Macau, the communists also held mourning ceremonies (unlike on the occasion of CHOU En-lai's death), in the Nam Tung Bank, as well as ceremony at the customs house on the border. The former occasion was attended by the Acting Governor who had already sent a message of condolence to Peking and by numerous Portuguese officials. Government offices were shut and gambling was suspended at the casinos for 3 minutes on 18 September CHOU En-lai rated 10 whole minutes in January. On our own border the situation was normal. Black arm bands were seen on border militia on 10 September. The flow of legal immigrants was unaltered, although the number of illegal immigrants fell, no doubt because attendance at compulsory political study and mourning sessions made escape less easy to arrange than normal. Food continued to enter Hong Kong from China at the usual rate despite the continuing problems on the railway line, which is still not fully repaired after the rainstorm last month. We have received no evidence from travellers of anything untoward in Canton, although additional city militia was placed on guard.

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Turning to the business community, their reaction was calm and in marked contrast to the alarming predictions which hal been made about the effect that MAO's death would have here. Although the Stock Market fell when it opened on 10 September after the holiday, there was no lack of buyers to pick up the shares being sold and in the view of some, the passing of the Chairman was at least one uncertainty out of the way. There was a rumour of trouble in China on the evening of 13 September, which proved unfounded and since then the market has gone up. There has been no outflow of capital from Hong Kong of any noticeable proportions and the HK's strength has if anything increased. The press, both neutral and right-wing, have for once agreed that the status of Hong Kong is unlikely to be altered in the near future: China will not'kill the goose which lays the golden eggs as many editorials put it.

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