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the main weapon of Bolshevism in the Far East is propa- ganda among the Chinese masses and, more dangerous still, in the schools and colleges where the next generation of Chinese is being trained to think communistically. An illustration of the growth of Russian influence in Chinese educational institutions is afforded by the enclosed

Encla, No.7-translation of a report in the Man Kwok Yat Po regarding

staff for the Chung Shan University at Canton. Against this infection the representatives of Great Britain, admittedly the first target of Moscow's attack, are for- bidden to attempt any defensive counter-propaganda. Even the magnificent opportunities for publicity afforded by our wireless achievements do not seem to be used to lay before the world the facts about China under the Third

International.

4.

Locally there is good reason to believe that the reopening of work after the New Year will be the occasion of a vigorous effort by the Canton Labour Unions to form communist "cells" in the Hong Kong labour organ- izations with a view to the usual programme of unreason- able demands, strikes, riots and flaming denunciations of "capitalist oppression" leading up to another "general strike". I hope the experiences of the last general strike have created a body of opinion in local labour circles sufficiently convinced that the whips of capitalist exploitation are lenient beside the scorpions of union tyranny to defeat an attempt on the lines indicated. But I have thought it advisable after consulting my Executive Council to take certain additional powers under the Emergency Regulations Ordinance No. 51922.

Encio No. Copies of the new regulations are enclosed. I have

also instructed the Captain Superintendent of Police

to take steps to reconstitute,under Ordinance No.27

* Not practed.

of

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