Lee Kuan Yew
Strikes and power struggle

Any man in Singapore who wants to carry the Chinese-speaking people with him cannot afford to be anti-Communist. The Chinese are very proud of China. If I had to choose between colonialism and communism, I would vote for communism and so would the great majority.

Lee to an Australian journalist a week before the riot

On 23 April 1955, workers from the Hock Lee Amalgamated Bus Company began a strike under the direction of Fong Swee Suan, leader of the Singapore Buses Workers' Union (SBWU). As SBWU's legal advisor, Lee worked with Marshall's government to negotiate a resolution, which was initially agreed by the SBWU but then reneged on by the company. Seeking to exert greater pressure, Lee, Fong and Lim Chin Siong addressed the strikers on 1 May (May Day), where Lee called the government a "half-past six democracy". The strike subsequently escalated into a riot on 12 May.

Lee, Marshall and the company agreed on a further resolution on 14 May, which conceded to several of the strikers' demands. In an emergency legislative assembly sitting on 16 May, Chief Secretary William Goode accused Lee of losing control of the PAP to Lim. Lee was constrained between defending the actions of his colleagues and denouncing them, instead reiterating the PAP's committal to non-violence. Marshall defended him and the PAP as "decent men" against Goode's accusations and called upon the party to "purge themselves of communists".

The riot led the public to perceive the PAP as being led by "young, immature and troublesome politicians", resulting in a shortfall of new members. It deepened the divide between two emerging factions, with Lee's faction advocating Fabian 's brand of socialism for gradual reform and Lim's faction, later described by Fong as "favour(ing) a more radical approach". Lee was convinced that Lim and Fong's influence were pushing the party toward "political disaster". After consulting his allies Toh Chin Chye, S. Rajaratnam and Byrne, Lee censured the two men privately and demanded they change strategies or leave the party.

By 1956, Lee believed that the PAP "had been captured by the communists" and privately endorsed the Labour Front government purge of suspected "leftists" in the aftermath of the 1956 Chinese middle schools riots. The arrestees included his rival Lim and several other PAP members. When other leftist members captured six seats in the PAP central executive committee (CEC) elections on 4 August 1957, Lee refused to allow his allies to assume their appointments and said that his faction had "lost their moral right" to enforce the party's founding philosophy. Overtures were made by fellow CEC member T. T. Rajah to remain in his post, to which he declined. The government arrested the leftist leaders on 22 August and Lee was restored as secretary-general on 20 October. He later blamed the attempted takeover on lax admission rules to the party and permanently distrusted the leftists thereafter. On 23 November 1958, the party constitution was amended to implement a cadre system. The right to vote in party elections and run for office were revoked from ordinary party members, whom now had to seek approval from the CEC to be a cadre and regain these privileges. Lee credited the Vatican system where the pope pre-selects its cardinals for the idea.
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