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4.
Overall trade depression continues particularly in the textile industry which is becoming increasingly alarmed at the effects of Japanese competition and is again pressing for Government assistance in obtaining resumption of supplies of raw cotton from U.S.A.
5.
A Hong Kong factory has disclosed that it has good prospects of obtaining a large order for steel helmets for supply to the Chinese Nationalist Army. The political implications of this are under consideration.
6
Situation in the tramway dispute has become somewhat easier following the announcement by the management reported in my telegram No.24.
Tramway Workers Union is now concentrating its campaign upon demand for recognition of the Union by the management and for complete cancellation of new conditions/of service instead of postponement. There have been/no major developments in the case of the dock companies.
7.
As reported in my telegram No.33, eleven. Chinese connected with the local film industry were deported on 10th January on the grounds that they had employed methods of coercion in order to induce the production of pro Communist propaganda films in the Colony. Left wing exploitation of the situation resulting from the recent squatter area fire appeared at one time likely to have serious consequences but was frustrated by prompt deportation of three ring leaders in the agitation including the Chairman and the paid secretary of the Spinners and Weavers Guild. The se deportations have been reported prominently in the local left wing press on the familiar lines of interference with the personal freedom of the Chinese population, but this has not yet been developed into a major campaign and there has as yet been no significant reaction in general labour circles.
8.
Apparent balance of departures over permitted entries 3,101. General border situation unchanged.
9.
Nam Fang Yat Po, Canton of 13th January published allegations that a series of small scale guerilla attacks in the frontier area during the period September/November 1951 were undertaken with the connivance and encouragement of the Hong Kong Government and that guerillas were allowed to withdraw into British Territory. Dates given for these incidents do not tally with our own reports of guerilla activity in the border area.
(Copies sent to Foreign Office Bag Room for despatch to
Washington).
Hong Kong Weekly Intelligence Report External Distribution
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