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Provoked by this the Japanese returned in force (about 200 strong) The guerillas yielded the island to them at the request of the inhabitants, to avoid reprisals to the latter, but the Japanese soon withdrew again.
On the island was a tannery, a developed by the Japanese Navy. Whether it existed before is not clear. When the island was first evacuated by the Japanese, considerable stores of leather was left behind; most of this was removed by the guerillas, and the remiander by the Japanese when they came back.
The guerillas number about 100. They were supplied by the village elders with a catty of rice per head per day and small bits of meat etc, for eating with it. The guerilla administration is highly thought of by the local people, as it was honest and efficient.
The Reds were very keen on stamping out gambling, and had some success in the matter. The islanders are now petitioning the HONG KONG authorities to resume control.
LANTAO and CHEUNG CHAU ISLANDS.
The general situation on LANTAO and CHEUNG CHAU islands is reported to be satisfactory. Detachments of No. 1 Commandos who occupied TAI-0 on LARTAO and CHEUNG CHAU island report that friendly liaison has been maintained with Central Government guerillas in TAI-0 and that there is no sign of any rival force on the island. A later report from No. 1 Commando states that the Central Government gueril.as have now left TAI-O
VII INDIAN NATIONAL ARMY.
Two officers and six 0.R.'s of the Indian Army who recently arrived from SHANGHAI in H.m.S."REDPOLE" are awaiting trans- portation to IDIA. Evidence exists toshow that all these men took an active part in I.N.A. activities in SHANGHAI, and it is proposed to forward all the available evidence to INDIA and to recommend that the officers and 0.R.'s concerned be appre- hended on arrival there.
VIII SPECIAL APPENDIX
THE FOLLCICAL SITUATION IN CHINA.
Discussions between the KUOMINTANG and Communist leaders are continuing in CHUNGKING. No definte decisions have been reported even on the subject of the composition of the ALL Party Political Council which is to deal with the vital issues affecting the two groups. It is possible that the council will be composed of thirty-six members of whom nine would have no party affiliations, but it is definitely stated that on the important subject of voting procedure no agreements have been reached. In the military sphere a slightly me encouraging trend is evident. Military experts are to discuss detailed settlement of problems in their field and certain fundamental military problems are reported very close to settlement by mutual agreement.
(2) The ousting of the Yunnan war Lord LUNG YUN is another obvious step in the process of unifying CHINA. In the past, Chinese war lords with their provincial troops have enjoyed a considerable amount of independence, but the Central Government seems to have decided that it is high time that they were brought to heel, and made to realise the supremacy of the Chungking Government.