REVIEW OF THE YEAR
representations in Peking by H.M. Chargé d'Affaires both the yacht and its crew and the launch were, in due course, returned by the local Chinese authorities to Hong Kong.
On July 23rd, to the alarm and dismay of people all over the world, a Cathay Pacific Airways passenger aircraft on a flight from Bangkok to Hong Kong was shot down by Chinese fighters off Hainan Island with the loss of ten lives. The Central People's Government admitted responsibility and have now paid compensation amounting to £367,000. But the case of the Royal Naval launch fired on in the Pearl River Estuary in September, 1953, and the claim for compensation lodged with the Central People's Government by Her Majesty's Government, is still outstanding.
Interference with British merchant shipping bound to and from Hong Kong by vessels under the control of the Chinese Nationalist authorities in Formosa has continued and, as before, H.M. ships gave protection where possible and protests and claims were lodged with the Nationalist authorities.
Relations with the neighbouring Portuguese Colony of Macao have remained close and friendly. The Governor of Macao, Rear-Admiral Joachim Marques Esparteiro, spent two weeks' holiday in the Colony during the summer, and the decoration bestowed on him later in the year by his Government gave pleasure here.
The visit to the United Kingdom, after the Geneva Conference, of a trade delegation from the Central People's Government was followed with interest, and a
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