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There are increasing indica io s of Chi ese Communists endeavouring to retain undercover organizations to watch the activities of the Chinese armies referred to above. It is not anticipated that there will be armed resistance.
General S.K. YEE, at the time of his rece t trip through the ew Territories, crossed the border at SHUM CHUN and addressed representatives of the Communist forces. He i for led them that i ey should lay dow their arms and if they wished to conti.....e fighting, to report to the 13th Army H.Q. for duty.
FIRACY
WATERS AROD MACAO
(1) A report has been received of mixed parties of Chi ese a d raya ese pirates operating from the LADRO E Islands in motor and sailing junks.
(2) SANCHAU Island, previo sly a Japanese air base, is also reported to be the home of mixed parties of Chinese and Japanese pira es. It is believed that piracy from SAFCHAU is being directed by KIN CHEE Y N and NG FAT TSAI, numbers of whose ganu are also known to be ou WOC KUM Island.
(3) A Chinese who claims to be an ascistant ot the guerilla leader WATT YUEN CHAK has been operating from TAI HO on LA TA Isla d. He has been practicing extortion on junks sailing between HO CKONG and MACAO demanding "protection fees".
(4) On September 2 th, 1945 a junk was at acked ear the off MACAO, and taken by the pirates towards LAFIA Isla d. intervention from MACAO, the ju.k successi lly made LAPPA.
IVE Isla ds Despi e police
(5) It was reported by a fairly reliable so rce o.. October, ls, 194 that a gang of pirates, Lumberin abo t 60 to 70, is operating from an island opposite MACAO called "MA SHAM". About 10 rubber too s and one motor junk are used to rob passing boats ad fishing ke i the early morning hours, the gang lying up in the hills during the daytine.
GUERI LA FOF CEC
Following upon the e.tablishme.t of contact bewteen a reconnaissance party of R.M. Commandos and the leader of be Chinese guerilla force in the area of the Eastern Peninsula, arrangements have been ade for he Chinese withdrawl from, and the British occa ion of, SAI KUNG and KILING HA.
COMMUNICATIONS.
The KOWLOON-CA:TON railway has been i spected from the air ad, combined with other reports, it is now possi le to ive a fairly clear picture as regarûs ius state. All bridges are intact, there are no breaks in the permanent way, and there are no blocks except for one landslide about 5 miles North of SHUM CHUN which, however, can be negotiated with care. Before the line can be put into regular service, it will be necessary to inspect carefully some of the bridges and certain sec ios of he line where the sleepers appear to be in bad co di ion. A ood deal of rail-car traffic has been observed, and a week ago 2 America. Officers came by train from CANTON to SHM CHUN in a little over three hours.
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