I return this file into circulation according to the ladder above Mr. Seel's minute as I am not quite sure at what point it was withdrawn.

Mr. Sidebotham handed it back to me after a meeting in Sir Charles Jeffries' room this morning in which the present position of Hong Kong in the face of the recent deterioration of the situation in China was discussed in all its aspects.

The meeting decided to do everything possible to speed up the effectiveness of the H.K.V.D.C.: and to refer for the advice of the Chiefs of Staff the present position of Hong Kong in view of the possibili- ty of the Communists there changing to an anti-Government attitude, and of the various problems such as influx of refugees, possibly accompanied by saboteurs etc. as the war moves southward in China.

A new file is being opened to deal with the measures to be taken and will in effect take over all the outstanding action required on this file.

1

9

10 Hond, Kind

Hong Kong

12.11.48

tol 1138 kerel (ong on 94051/2/ we 1162 Secret long on 54436/48)

The circulation of this file was interrupted

-6.11.48

12-11-48

in order that account could be taken of the Governor despatch at No. 3, and of subsequent action, in connection with the review of the situation of Hong Kong in relation to the situation created by the successes of the communist armies north of the Yangtze. I have since further delayed the circulation of the file in order that I could put upon it copies of Nos. 10 and 11 which indicate the kind of action we now have in mind to assist Hong Kong in meeting any possible threat to internal security. But even though the despatch at No. 3 is out of date as regards the imminence of such a threat, it is still of interest both for its account of the arrangements for the collection and dissemination of security intelligence, and also as regards the inadequacy of the police and other security forces to deal with a really serious threat.

Having reached this stage, I now return the file to circulation as shown in Mr. Seel's minute of the 10th November.

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11

Hong Kong

22.xi.48.

bi 1193( on 114001/28/48) - 19.11.48

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I have was seen this file

Sin T. Lema

thanks

Danny thank

24/1/18

This file is criculated for those

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