-2-

PRO/616/3.

start by aiding Chinese industry in Hongkong. The "Hwa Shiang Fao" on the same subject said that a lasting Sino-British friendship can only be built on the foundation of truc equality. Our British friends, who are well- known as being 'realistic', must have taken cognizance of this factor.

3.

Comments on Colonial Matters.

..

Nothing appeared in any of the newspapers under this heading.

91

4.

Comments on International Matters.

The Kwor Yin Daily News" declared that the Indians have missed their chance for independence because of their partisan strife. "Indeed," added the paper, "their foolishness is ludicrous." The "National Times" said the situation in India was bleak. The "Kung Sheung Daily News" said that China's traditional policies so far as overseas Chinese were concerned were no longer applicable and how to cope with the new situation and how to handle the overseas Chinese problem would become big issues for the Chinese abroad and the Chinese government. Dealing with Russia's foreign policy, the "Kung Sheung" said that at the moment Russia was prepared to make con- cessions to bring about international stability, but that once any important matter is at issue, her attitude would stiffen again. The rest of the Chinese press comment dealt with the political situation in China, and followed traditional lines.

SAG/APC

8.a. Bray

S.A. Gray, P.R.O.

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