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Extract from Savingram No. 30 Secret dated 10th May, 1948

rom Governor, Hong Kong to Secretary of State for the Colonies Repeated to British Embassy Nanking No. 21: Consul General Canton No. 40: Commissioner General South East Asia No. 144.

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The announcement by the U.K. Government regarding adjustment of Hong Kong war costs has been greeted with mixed feelings. There has been no reaction as yet regarding the announcement that interest-free loans up to £3,000,000 to construct a modern airport would be made. No Chinese news- paper has yet sought to interpret this as an indication of intention with regard to the future of Hong Kong.

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