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PRO/871/3.

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3. News Items & Comments on Colonial Matters.

(a) Hong Kong is to co-operate with Chinese Maritime Customs in the prevention of smuggling. (Sing Tao Jih Pao, 21/4).

(b) The Hong Kong Chinese Press generally give promi- nence to petitions to Government against the introduction of direct taxation or Income Tax.

(c) "Wah Kiu Yat Po" of 21/4 devotes considerable space to currency control. This is considered to be in the nature of a tariff wall against American goods to remove American competition rather than a defence of sterling. It is consi- dered that such control is bad for the Colony's trade. "Kung Sheung Daily Press" of 25/4 rather deplores the ban on import of gold.

(d) A bomb was exploded outside the Hong Kong Post Office. There were no casualties. (Wah Kiu Yat Po, 24/4).

4.

Comments on International Matters.

(a) In general the Hong Kong Chinese Press have given an unusually large amount of space to comments on international affairs.

(b) The movement for the retrocession of Macao is gather- ing force. Schools, theatres, radio and petitions to the Chinese Government are reported. (Sing Tao Jih Pao, 22/4). "The finance and morality of our Chinese people will be adverse- ly affected by this 'Monte Carlo'." (Sing Tao Jih Pao, 25/4).

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(0) Macao is named as the new "Black Market" terminal for remittances to China from United States. (This follows on the tightening up of Exchange Control in Hong Kong.) Yat Po, 25/4).

(Wah Kiu A boycott of Macao by vegetable growers of Chung Shan is threatened. (Chien Kuo Jih Pao, Canton, 21/4).

(a) The administration of Port Arthur, Dairen, and area surrounding them is causing considerable friction between the Chinese and Russians. (Sing Tao Jih Pao, 26/4).

"Kung Sheung Daily Press" of 22/4 throws blame for friction on the Chinese Communist troops in the area.

(e)

Comments on the failure of the Foreign Ministers Conference at Moscow follow the political alignment of the various papers.

Comment is in all cases mild and restrained.

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(f) A survey of the China-Burma boundary is proposed. (Wah Kiu Yat Po, 22/4).

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