COPY.

briginal in 54145/49

House of Commons,

London, S. W. 1.

kt. Hon. D. R. Kees-williams, M.P.,

Parliamentary Under Sec.,

Church House,

Gt. Smith Street, London, S.F. 1.

Dear Rees-tilliams,

8 188

29th April, 1949.

In continuation of correspondence between us on the subject of Hong Kong, I wrote and asked my brother a series of questions in amplification of information he had previously given me on the subject of the feeling of insecurity amongst sections of the British Mercantile communiy of Hong Kong. My brother had reported to me that this feeling of insecurity was tending to cause uncusiness and substantial orders, both on indent and on account, were in danger of cancellation or modification; moreover it seemed that efforts to secure further orders might be restricted. I attach a note now sent to ne by my brother which while dealing with Trade, I am sending to you because the matter is of course political.

I realise that the general situation in China, as opposed to the particular situation in Hong Kong, will

cause

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