- 3-

41

(36)

struggle for existence.

But on the entry of Great

Britain into a major war, with a considerable likelihood

of finding Japan among her enemies, not only did the

offences of the possession and use of an illicit

transmitting set become much more serious in themselves,

they also became associated with breaches of the

published censorship regulations relating to the

gossession and use of codes and cyphers. It would be

difficult to exaggerate the gravity of such offences

when committed during war-time in a fortress situated

as Hong Kong is.

The second category consists of abundant

evidence that David Kung, son of the Chinese Minister

of Finance, who is in joint control of the Hong Kong

offices of the Central Trust, an important agency of the

Chinese Government, was energetically directing a murder

organization from one of these offices in this Colony:

the third contains ample proof of anti-British activities,

such as espionage on the British Ambassador and the a vowed

aim of embroiling the British with the Japanese in Shanghai,

vide my very secret despatch of 13th October dealing with

this subject. Comment upon these abuses of hospitality

and treachery towards a friendly power is unnecessary.

have been informed by the British Ambassador of an assurance

given to him by the Chinese Minister for Foreign Affairs that

he knew nothing of the underground activities carried on

by David Kung, and as Sir A. Clark Kerr was himself convinced

by that assurance I accept it: but I do not believe that

those activities were unknown to all the responsible

Government officials in Chungking.

I

P.T.O.

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