TOP SECRET 8Such a blockade would not greatly inconvenience the economic life of Hong Kong provided the Communists are prepared to trade freely since alternative trade routes exist by road, rail and by smuggling through Mirs and Deep Bays. Situation in Hong Kong 9. External Small Communist forces have arrived on the Hong Kong frontier and have taken over the railway town of Shamchun; there have been no incidents. It is expected that the whole border area will be held by Chinese Communist regular troops and not guerillas.