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Hong Kong, who came back to Hong Kong 9-12-39 "to continue

his studies" relieving Colonel Yoshio ISHINO, who is

believed to have failed in his mission here and who left

for Japan via Formosa 13.12.39 on the same boat as the Formosa bank president and the Japanese crowd seeing them off was so great that the HONG KONG NIPPO says

"such a scene has not been witnessed since the Sino-

Japanese incident started". SUZUKI has taken over

ISHINO's several "domestic servants" who still make

frequent trips to Canton, including the chauffeur, and these travel in Japanese boats apparently on free passes issued by the Japanese military and to the annoyance of the shipping agents.

The SOUTH MANCHURIA RAILWAY is now coming out into

the open in Hong Kong and has started an official office

at 2, Connaught Road, Central, second floor, beneath

the Japanese Consulate in the property recently purchased

by Japanese semi-offical newspaper interests. A public

reception is expected soon when pictures of Manchukuo

scenery will be shown.

Viscount Tadashiro INOUYE, pro-British member of the

House of Peers formerly, and perhaps now, adviser to the

Foreign Office, passed through Hong Kong 22.12.39 en route

from Japan to Manila on the same boat as the Japanese

goodwill "GIANTS" professional baseball team also going

to Manila. About the same time come press reports that

the U.S. Manila authorities are considering the legality

of Japanese holdings in the Philippines.

The Japanese Press now refer to "disposing of the China

incident" rather than "establishing the new order in China"

but the CHINA AFFAIRS BOARD aims at joint defence of East

Asia, liquidation of imperialistic domination, co-operative

Sino-Japanese trade and culture relations and promotion of a

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