[456B) Wt. 32483/800 100m. 11/48 C.N.Ld. 748

huri Vnient

Fairclough 23/1

C. O.

Mr.

Mr.

Anderson 2

25/1

Mr. Hall 25/1

Mr. Sidebo Hamm 25/katn

Mr...

DRAFT. Sectim of

Annual Report to Plt.

Your Reference.

Top

V

2 shemes

in

Whits Laser pt.

Fermt. U.S. of S.

Parly. U.S. S.

Minister of State

Secretary of State

FURTHER ACTION.

HONG KONG During the past year Hong Kong has

naturally been considerably affected by the establishment.

of the authority of the Central People's Government over

the whole of China and by the unsettled conditions of

the Far East generally. In view of these conditions

His Majesty's Government have maintained in the Colony

the substantial reinforcements of all arms which were

originally sent for the protection of Hong Kong in May,

1949. These forces have undertaken vigorous training

the value of which has been proved by the two battalions

sent from Hong Kong to Korea in September 1950 and have

maintained themselves in a state of preparedness.

During the summer a number of incidents occurred in which

ships using the south-western approaches to Hong Kong

were fired on from Chinese islands near the Colony;

protests were made in Peking but no reply has been

received.

Despite difficulties in the early part of the year

due to the Chinese Nationalists' blockade of ports on

the mainland of China and over the running of through

trains between Canton and Hong Kong, the Colony's trade,

both with China and the rest of the world, continued to

prosper. The outbreak of fighting in Korea in June did

not have the immediate serious effect expected and up till

the end of November 1950 trade figures were breaking all

4th of Ame

trade with

records.

rutal

embargoYon

However, the American embargo

/China

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