в

China, which followed on the Chinese intervention in

Korea in December 1950, could not but have an adverse

effect on Hong Kong's trade and industry which cannot affrement

[be fully evaluated

++

the time of going to press.

In the early part of the year refugees from China

continued to flood into Hong Kong to such an extent that

in May, 1950, control of Chinese immigration from China

to Hong Kong was introduced for the first time in the

history of the Colony. Of the other events during the

year the most important were the financial agreement

reached in May, 1950, between His Majesty's Government

and the Hong Kong Government details of which are

given in paragraph

; the grant of £250,000,

made under the Colonial Development and Welfare Acts to

Hong Kong University for capital development; the

establishment of a Public Services Commission to make

recommendations concerning the appointment of candidates

to the Hong Kong Government service; and the making of

an Order-in-Council enabling the Hong Kong Supreme Court

to adjudicate in the dispute between an American Company

and two Chinese air-lines as to the ownership of 70

aircraft, which, until ownership is decided, remain

in the Colony. The question of constitutional reform,

which has presented more difficulties than were at first

envisaged, is still under consideration.

Hong Kong's many problems were fully discussed with

the Governor who came home on leave during the year.

Information Dept. to check later with Hong Kong Dept. and Supplies Dept. in cas evaluation is possibze.

++ Information Dept. to insert

reference to para. on the financial agreement which has been prepared by Finance Dept.

Information Dept. to check later with Hong Kong Dept.

Information Dept. to check later with Hong Kong Dept. in case of further developments..

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