ALL WAS REPORTED QUIET TODAY (SUNDAY) AT THE BORDER VILLAGE OF SHATAUKOK WHERE FIVE POLICEMEN WERE KILLED AND 12 OTHERS INJURED BY MACHINEGUN AND RIFLE FIRE FROM THE CHINESE PEOPLE'S REPUBLIC SECTOR YESTERDAY.

NO INCIDENTS WERE REPORTED AFTER A BATTALION OF TOUGH GURKHA TROOPS ENTERED THE VILLAGE AND RELIEVED THE BELEAGURED POLICE POST WHOSE 86 OCCUPANTS WERE PINNED DOWN BY COMMUNIST FIRE FOR SEVEN HOURS.

A CURFEW WAS STILL IN FORCE AND ALL SECURITY DUTIES, WHICH UNTIL YESTERDAY WERE CARRIED OUT BY FRONTIER POLICE MADE UP OF CHINESE AND PAKISTANIS UNDER BRITISH OFFICERS, WERE IN THE HANDS OF THE GURKHAS.

THE GURKHAS WERE CALLED IN WHEN THE POLICE COULD NOT CONTROL THE SITUATION. THEY DID NOT USE THEIR WEAPONS IN THE OPERATION. AS SOON AS FIRING DIED DOWN, ARMOURED CARS MOVED UP TO RECOVER THE DEAD AND WOUNDED.

A HONGKONG GOVERNMENT SPOKESMAN STRESSED THAT THE FIRING FROM ACROSS THE BORDER CAME FROM CIVILIANS, SOME OF WHOM WORE ARMBANDS AND THAT NO UNIFORMED PERSONNEL WERE INVOLVED.

THE INCIDENT AT THE BORDER, WHICH UNTIL RECENTLY USED TO BE DESCRIBED AS ONE OF THE MOST PEACEFUL, WAS THE WORST SINCE THE COMMUNISTS CAME TO POWER IN CHINA IN 1949.

IT WAS SPARKED OFF WHEN 1,000 PEOPLE, ARMED WITH IRON BARS AND STICKS CROSSED INTO BRITISH TERRITORY AND ATTACKED THE POLICE POST, LOCATED ABOUT 30 YARDS FROM THE BORDER. THE POLICE RETALIATED BY FIRING WOODEN PROJECTILES AND TEARGAS. WHEN THE CROWD FAILED TO DISPERSE AND INSTEAD TRIED TO BLOW UP THE POST'S DEFENSIVE STRUCTURES WITH EXPLOSIVES, THE POLICE OPENED FIRE, HITTING TWO PEOPLE.

A FEW MINUTES LATER, SNIPPERS ON THE CHINESE SIDE OPENED UP WITH SMALL ARMS AND AUTOMATIC WEAPONS, KILLING TWO CONSTABLES OUTRIGHT. A COMPANY OF POLICE IN THE VILLAGE'S RURAL COMMITTEE BUILDING SITUATED ABOUT 50 YARDS FURTHER BACK ALSO CAME UNDER FIRE.

SHATAUKOK IS NOT REGARDED AS A CROSSING POINT, ALTHOUGH VILLAGERS DO MOVE FROM ONE SIDE TO THE OTHER FREQUENTLY WITHOUT RESTRICTIONS. THE BORDER IS MARKED BY SMALL POSTS PLACED IN THE CENTRE OF THE VILLAGE'S MAIN STREET.

THE VILLAGE IS REGARDED AS THE MOST SENSITIVE SPOT ON THE 17-MILE BORDER. THE FRONTIER SPLITS THE VILLAGE IN TWO, RUNNING DOWN THE CENTRE OF THE MAIN STREET, ONLY A LINE OF SMALL POSTS SEPARATES THE TWO SIDES.

"(ILLEGIBLE)" THE COLONY'S ENTIRE POLICE FORCE, TOTALLING 10,000 REGULARS AND 2,000 AUXILIARIES WERE PLACED ON THE ALERT.

IN HONGKONG THERE WERE ONE OF TWO BRIEF DEMONSTRATORS IN THE KOWLOON "(ILLEGIBLE)" DISPERSED QUICKLY WITHOUT INCIDENT. OTHERWISE THE CITY -- WREATH BY LEFTIST DEMONSTRATIONS AND RIOTS A MONTH AGO -- REMAINED QUIET BUT STILL HARASSED BY LEFTIST-INSTIGATED STRIKES, PARTICULARLY IN THE TRANSPORT SERVICES.