Tolegram from the Governor of llong Kong to the Secretary of State

for the Colonies.

Dated 24th October,1938 Received 8.4am 24th October, 1938.

No 300.

Repeated to Tokio saving No 25.

Invasion of

7

3.

Kwangtung and the news of the fall of Canton have been quietly accepted by the local population.

Groator part of the now

Territory and frontier fenced by military authorities and picketed with police posts at the usual points of entry. Police reservo called out to relieve the men drawn from the regular force for frontier duty. Anon refugees entering at these points or crossings adjoining the water probably do not exceed 4,500: small number due to Japanese operations being at some distance. Bombardment of Bocca Tigris Fort now understo.d to bo proceeding may

temporarily increase the number of rofugees. At present refugees in camp at Pat Heung number about 1,000. Those with close

relatives in tho Colony have been allowed to leave camp on the undertaking by the latter to support them. With the fall of Canton presumably fighting in the south of Kwangtung will cease and I hope soon to be able to evacuate the refugees homewards. Notwithstanding efforts to concentrate the refugees it is certain that considerable number has reached the urban area either by llacao steamers or by junks from other coastal places or by escaping from camp which is unfenced.

Imported supplies of fresh vegetables fish and poultry have fallen off by about 70% and prices have risen by from 50% to 100% but this food situation is regarded as transitory: there is no serious shortage of stocks and it is oxpected that supplies will be supplemented from alternative sources before long. No requisitionings or price control have been considered necessary though powers have been taken for those purposes.

Through train to Canton stopped on 12th Octobor.

Lailray

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