There then supervened the Po On Magistrate's visit to Kowloon city on the 7th January, following which a considerable number of squatters returned, encouraged thereto by agitators and by Po on officials. At the same time exaggerated and misleading reports appeared in some sections of the Chinese language press, notably in the National Times, which it is understood receives subsidy from the Kuomintang, the predominant party oin the Chinese Government. The consequence was that, when the Hong Kong Government met the challenge to their authority and took steps on the 12th January to clear the site again, the police escorting the working party met with organized resistance and were compelled to use force. For that the chief responsibility must be attributed to the Chinese language press in Hong Kong and in Chine, which for weeks past had been sedulously faming the spark of auti- british agitation and to the provocative action of the Po on Magistrate referred to above. I would emphasize in this conexion that the Hong Kong police on the 12th January exercised the greatest forbearance, as will be clearly seen from the fact that only one person was seriously hurt and one other detained in hospital, four others receiving superficial injuries. All have received, or are still receiving, free medical treatment and maintenance while in hospital. Had the facts been presented to the Chinese public in proper perspecitve, I do not doubt tbut that they would have regarded the matters at issue in a calmer and more objective spirit.

4 His majesty's Government for their part also

deiore the fact that the indident in question took place while discussions about the walled city of Kowlook were proceeding at Nanking. They regard these discussions as still in progress and they hope shortly to submit their views to the Chinese Government.

7. /

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