4 -

7

enclosures provide ample evidence that this man spying on the

British Ambassador was doing it on behalf of David Kung.

19.

42 to 48 are intelligence reports of various sorts

concerning Burma. 51 to 87 are translations of miscellaneous

intelligence reports.

20.

(88) gives a list of Chinese owned schools in Hong Kong

This reveals an undesirable

and their political connections.

state of affairs.

21.

911

deals with a Society which calls itself the Nam

Chim Sh'e of which David Kung is the President and which has

branches in Shanghai, Hong Kong, Kweiyang and Chungking.

22.

Amongst the members is the man responsible for the

coding and decoding of secret messages referring to assassinations

in 1 and 2 Several other persons connected with this

23.

business of assassinations are also members of this Nam Chim Sh'e.

From the mass of material found, there is still an

enormous amount of enquiry work to be followed up by Special

Branch which must take a considerable time. I submit the matter,

however, at this stage as I think this should be placed before

the Government for information now. His Excellency, the Governor

and the British Ambassador have already seen small parts of this.

Instructions are desired as to what further action

24.

should be taken.

25.

There appears to be evidence of (a) conspiracy to

murder, (b) espionage on the British Ambassador to China and (c)

using the premises of 172 Nathan Road under cloak of legitimate

business and privilege, for a Secret Service centre in Hong Kong.

It is more than probable that the evidence would be

sufficient to sustain either criminal proceedings or deportation

proceedings against Kung and others connected with 172 Nathan Road

or with the Nam Chim Sh'e.

26.

27.

The question will also have to be considered as to

whether or not the Nam Chim Sh'e should be declared an unlawful

society.

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