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PRO/924/3.

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Comments on Internal Events.

(a) There are few comments on China's internal affairs, apart from the daily plea in practically every paper for an end to the Civil War. Kung Sheung Daily Press of 16/5 says that the U.S.A. should make Peace a condition of the proposed loan to China.

(b)

Wah Kiu Yat Po of 12/5, commenting on the appeal to wealthy overseas Chinese to invest their money in the develop- ment of China, says that such investments will only be made when currency is stabilised and reasonable conditions assured.

3.

News Items & Comments on Colonial Matters.

"Vegetable Control costs Hong Kong Government HK$1,000,000 in eight months". (New Life Evening News, 14/5). Note:- This is quite untrue, but part of an organised campaign to discredit Government's attempts to help the producer.

4.

Comments on International Matters.

(a) The U.S.$500,000,000 loan negotiations are in an advanced stage. (Wah Kiu Yat Po, 12/5).

(b) Sing Pao of 13/5 prefers a British Socialist Govern- ment for the internal good of Britain, but says that a Conserva- tive Government is better at dealing with foreign affairs. Conservative Government after next election is a possibility.

(c) A Chinese Mission is to inspect Dairen and Port Arthur prior to taking over these places. Britain and U.S.A. should be asked to assist China to get the

(Wah Kiu Yat Po 13/5). Russians out. -- (Wah Kiu Yat Po, 16/5).

(a) Peiping papers report that the Third International has ordered Chinese Communists to proceed with a plan to Sovietise China. Kamos is to be the new capital. (Wah Kiu Yat Po, 14/5).

(e) It is reported that some of the anti-smuggling mea- sures agreed on between China and Hong Kong will shortly be put into effect. (Sing Tao Jih Pao, 1475).

(f) China should draft the Peace Treaty with Japan. (Sing Tao Jih Pao, 16/5).

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