Japanese occupied Hong Kong in 1941 the population was 1.6 million,

but this fell to 600,000 by August 1945 when the Japanese

surrendered. Thereafter the population grew rapidly, being further

increased by a large influx of refugees as communist forces gained

control in China.

7.

The new Chinese government established in 1949 did not mount

any military action against Hong Kong nor did it make any formal

claim for the return of either the leased or ceded territories.

However, the Chinese made representations and protests over a number

of issues including police actions involving Chinese residents,

Britain's refusal to hand over civil aircraft which were registered

as owned by a company created by the Chinese Nationalists and became

the subject of court proceedings in Hong Kong, and proposed actions

affecting the former Walled City of Kowloon.

8.

The climate of relations between Hong Kong and Peking was

affected by wider disputes, especially in the 1950s by the Korean

War and later by the Vietnam War, during which the Chinese protested

over visits (for rest and recreation) by American ships to Hong

Kong. However, in 1955 the Governor, Sir Alexander Grantham, paid

an unofficial visit to Peking, during which he met Prime Minister

Zhou Enlai, and cooperation over practical matters gradually

increased.

The first of several key agreements for the supply of

water from China was concluded with the authorities in Guangdong

province in November 1960.

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