HONG KONG ANNUAL REPORT, 1952

to it is impossible; it has been complicated too by the recent series of disastrous fires, which demand an exclusive and all out effort from those departments which would otherwise be putting into effect the longer term project for re-settlement; and a short term solution by cutting fire lanes through the crowded areas is now being considered.

A further international incident occurred in the early morning of 25th September, when the S.S. “Takshing”, a passenger vessel on the ferry service to Macao, was stopped when proceeding to Macao on her normal run by machine-gun fire from a gun-boat of the Central People's Government naval forces. The "Tak- shing" was ordered to proceed to Lap Sap Mei Island, where she was boarded and searched by an armed party which eventually removed a Chinese passenger alleged to have been involved in counterfeiting activities in Kwangtung. Meanwhile, two of Her Majesty's ships sent from Hong Kong in response to the "Takshing's" radio signal reporting her interception proceeded to Lap Sap Mei Island, where they were joined by the "Takshing" which had meanwhile been released. All three ships set course to return to Hong Kong, but when within Hong Kong waters shortly afterwards they were fired upon by Chinese shore guns on Lap Sap Mei Island and Her Majesty's ships were obliged to return fire. No damage or casualties were suffered either by Her Majesty's ships or on board the S.S. "Takshing".

On a number of occasions British ships bound to and from Hong Kong were fired upon or intercepted by Chinese Nationalist armed vessels in waters in the neigh- bourhood of Formosa. The most serious incident occurred on the night of 1st December, when the S.S.

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